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Cash ISA Allowance Cut — What Are IFAs Planning Now?

ended 28. November 2025

The government has announced a sharp reduction in the Cash ISA annual allowance, cutting it from £20,000 to £12,000. This unexpected move raises important questions for savers and advisers alike.

What are you doing in response to the reduced Cash ISA limit?

Are you shifting focus to Stocks & Shares ISAs?

Considering more use of investment accounts or Money Market funds?

Reviewing emergency fund strategies?

Reassessing the balance between tax efficiency and liquidity?

Communicating proactively with clients?

With clients now facing a smaller tax-free allowance, the industry response will be crucial.

We invite experts to share their thoughts:

How will this change alter your advice or planning approach?

1 responses from the Newspage community

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Editor
Scott Gallacher
Director at Rowley Turton
In anticipation of these changes, we at Rowley Turton had already been developing a lower-risk investment solution. Whilst it isn’t entirely equivalent to cash savings, it is designed for more cautious clients who can tolerate some — but not too much — risk. Based on our modelling, the downside risk in a severe market crash is expected to be limited to around 10%, although this cannot be guaranteed.

The solution blends a range of funds from leading managers across several sectors and asset classes, with a clear focus on maintaining a low overall risk profile. We believe it offers a strong option for clients who still wish to maximise their ISA allowances without taking on unnecessary volatility.

We were pleased to be able to begin discussing this with clients yesterday, on Budget day, as soon as the cut was announced.