Martin Lewis confirms Cash ISA birthday rule to keep £20,000 limit before 65

Express Published Jun 29, 2026 Reviewed Jul 4, 2026 ✓ Reviewed by citations.press editors

The tax year runs from April 6 to April 5, and the new Cash ISA rules come into force from April 6, 2027.

2027 · Start date of new Cash ISA rules

HMRC stated in a fact sheet published last week that from April 2027, the Cash ISA allowance would be reduced to £12,000 while the limit for Stocks and Shares and Innovative Finances ISA (non Cash ISAs) would remain at £20,000, and the Cash ISA allowance for those aged 65 and over would remain at £20,000.

12000 GBP · Cash ISA allowance from April 202720000 GBP · Stocks and Shares ISA and Innovative Finances ISA limit (non Cash ISAs)20000 GBP · Cash ISA allowance for those aged 65 and over2027 · Effective date of Cash ISA allowance changes HMRC

Chancellor Rachel Reeves announced that Cash ISA limits would be cut to £12,000 for those aged under 65, effective from April 2027, while those aged 65 and over would retain the full £20,000 Cash ISA limit.

12000 GBP · Cash ISA annual deposit limit for those under 6520000 GBP · Cash ISA annual deposit limit for those aged 65 and over2027 · Effective date of new Cash ISA rules Rachel Reeves, Chancellor

Those who turn 65 between April 6, 2027 and April 5, 2028 would still be able to keep their £20,000 Cash ISA limit, even if they turn 65 on April 5, 2028.

20000 GBP · Cash ISA annual deposit limit for those turning 65 in the 2027–2028 tax year2027 · Start of qualifying period for 65+ Cash ISA protection2028 · End of qualifying period for 65+ Cash ISA protection

Martin Lewis clarified that the higher Cash ISA limit applies from the tax year in which an individual turns 65, not on their 65th birthday.

Martin Lewis, Money expert

Martin Lewis confirmed that individuals aged 64 who turn 65 in the same tax year will retain the full £20,000 Cash ISA limit for that tax year.

20000 GBP · Cash ISA annual deposit limit for those turning 65 in the tax year Martin Lewis, Money expert

Cash ISA limit changes will take effect from April 2027.

Rachel Reeves, Chancellor

Annual Cash ISA deposits for those under 65 will be limited to £12,000 from April 2027.

12000 per year · Cash ISA limit Rachel Reeves, Chancellor

Those aged 65 and over will retain a £20,000 Cash ISA limit from April 2027.

20000 per year · Cash ISA limit Rachel Reeves, Chancellor

From April 2027, the Cash ISA limit for under 65s will be £12,000, while the total ISA limit remains £20,000, and those turning 65 in a tax year will receive the higher £20,000 limit.

12000 per year · Cash ISA limit20000 per year · Cash ISA limit Martin Lewis, Money expert

HMRC fact sheet confirms that from April 2027, the Cash ISA allowance will be £12,000 for under 65s, £20,000 for non Cash ISAs, and £20,000 for those aged 65 and over.

12000 per year · Cash ISA allowance20000 per year · non Cash ISA limit20000 per year · Cash ISA allowance HMRC, HMRC

The tax year runs from April 6 to April 5, and new Cash ISA rules will start on April 6, 2027.

Money expert Martin Lewis has confirmed the new Cash ISA rules for those who are set to turn 65.

In the latest Budget, Chancellor Rachel Reeves announced long-rumoured changes to Cash ISA limits would be put in place from April 2027.

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The changes would cut the limit on annual Cash ISA deposits down to just £12,000, but only for those aged under 65.

The move is intended to encourage more savers to invest their money rather than leave it sat in cash, which often yields lower average returns over the long term than investing.

However, following pressure by the likes of Martin Lewis, the Chancellor implemented a protection for those aged over 65, who may not want to leave their money sat in investments for years when they need it for retirement.

Ms Reeves announced that those aged 65 and over would be able to keep their full £20,000 Cash ISA limit for deposits each year.

Now, Martin has confirmed how this will work in practice for those who are set to turn 65.

He explained to his X followers that for the purposes of tax, those who are aged 64 will still get to keep their £20,000 Cash ISA limit if they turn 65 in the same tax year.

The tax year runs from April 6 to April 5 and the new Cash ISA rules come into force from April 6, 2027.

Those who turn 65 between April 6, 2027 and April 5, 2028 would still be able to keep their £20,000 Cash ISA limit, even if they don’t turn 65 until April 5, 2028.

Martin explained: “We now know the definition of "age 65" for the cash ISA limit. From April 2027, the cash ISA limit will be cut to £12,000 for all under 65s, though the total ISA limit remains £20,000.

“We now know you get the higher cash ISA limit from the tax year in which you turn 65. Rather than on your 65th birthday.”

HMRC said in a fact sheet published last week: “At Autumn Budget 2025, it was announced that from April 2027, the Cash ISA allowance would be reduced to £12,000 while the limit for Stocks and Shares and Innovative Finances ISA (non Cash ISAs) would remain at £20,000. The Cash ISA allowance for those aged 65 and over would remain at £20,000.

To support this change, a number of rules will be introduced to ensure the policy achieves its objective of encouraging retail investment and supporting better returns for savers. The new rules will minimise the opportunity for the lower Cash ISA limit to be circumvented, while preserving the flexibility needed for legitimate investment activity within non Cash ISAs.”

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