May 28, 2025
Article
Rachel Reeves has confirmed that the overall £20,000 ISA allowance will remain in place, offering reassurance to savers and investors alike. However, speculation continues around potential reforms; particularly the possibility of reducing the cash ISA allowance.
In a BBC interview, Reeves didn’t rule out changes to the structure of ISAs, hinting that reforms could be part of a broader strategy to encourage more people to invest in equities. Her Spring Statement in March echoed this sentiment, with the Treasury aiming to “get more people investing” and strike a different balance between cash and equity holdings within ISAs.
It is possible that lowering the cash ISA allowance could introduce unnecessary complexity and reduce the tax advantages for cash savers, without necessarily achieving the Government’s goal of boosting investment in UK equities.
What Does This Mean for You?
With ISA reforms potentially on the horizon, now is a great time to ask yourself:
- What’s your current balance between cash and investments?
- When did you last review your investment risk level?
- Is your cash invested for the long term and is it likely to grow ahead of inflation?
- Are you making full use of your ISA allowance early in the tax year, in a simple and efficient way?
- Are your ISAs consolidated into one easy-to-manage account?
If you’re unsure about any of these questions, you’re not alone. Many people set up ISAs and then leave them untouched for years missing out on opportunities for growth and tax efficiency.
That’s why we’re offering an independent, professional assessment of your ISAs. Whether you’re a seasoned investor or just starting out, a fresh perspective can help ensure your savings are aligned with your goals and working as hard as they should be.
Ready to review your ISA strategy? Let’s make your money work smarter.
The value of your investments can go down as well as up, so you could get back less than you invested.
The Financial Conduct Authority does not regulate tax planning