Anyone with a Cash ISA urged to deposit £20,000 before Sunday | Personal Finance | Finance
Anyone with a Cash ISA is being urged to make sure they max out their deposits before Sunday if they can – because the new tax year will reset limits in just a few days.
Cash ISAs, as well as Stocks and Shares ISAs, allow savers to deposit up to £20,000 each financial year, running from April to March, tax-free. This can be done with one single ISA, or you can deposit into multiple ISAs including a mix of different Cash and Stocks ISAs, as long as you don’t exceed £20,000 combined across all ISAs in a single year.
Cash ISA limits have not been cut by Chancellor Rachel Reeves for this upcoming tax year, despite months of speculation around the tax-free savings rules. It means savers will be free to deposit another £20,000 in their tax-free savings accounts from Sunday, but you have just days left to max out this year’s limits.
It means that savers are free to stash up to £20,000 into their tax-free Cash ISA before April 5, as long as they haven’t already maxed out their allowance in existing ISAs so far this tax year. They will then also have another £20,000 allowance open to them from Sunday, April 6, 2025 until April 5, 2026, as any changes that do come in future, if they come, will not be implemented before the following tax year, 2026-27.
If you still haven’t maxed out your Cash ISA for this year, you have until midnight on Saturday to do it before the limits reset and then from Sunday morning you will be free to add up to another £20,000 tax-free for the new tax year.
Investment platform Trading212 said in an email to customers: “Make the most of your ISA allowance now.
“Your 2024-25 ISA allowance is a use-it-or-lose-it opportunity – so why not make the most of it?
“There is still time before the deadline at midnight on 5 April 2025.
“Your ISA accounts let you grow your savings and build wealth tax-free. Avoid missing out on additional returns by using the entire £20,000 allowance for this tax year.”
The advice was echoed by money expert Martin Lewis, who said via his MSE website: “Prepare to pop the champagne corks and light the fireworks, 6 April is New Year (for tax at least) when all ISA and tax allowances reset.
“Yet that also means you’ve not long left to use this year’s allowance, and it’s best to do that, just in case you’ll be able to fill next year’s too.”
