Rachel Reeves has confirmed changes to the annual ISA allowance.
In today’s Autumn Budget, the chancellor announced that while the £20,000 annual ISA allowance would remain, she would designate £8,000 of that amount for stocks and shares.
This means the annual cash ISA allowance is being cut from £20,000 to £12,000.
In the run up to the Budget, warning were sounded that, in the event of such a cut to the cash ISA limit, building societies could be forced to raise their mortgage rates.
In her statement, Reeves justified the changes to the ISA rules by claiming that the UK has some of the lowest rates of retail investment in the G7, while some people would have fared better by invested in stocks and shares, as opposed to putting their money into a cash ISA.
A cash allowance of £20,000 will remain for those aged over 65.
