{"id":551,"date":"2025-04-30T08:07:11","date_gmt":"2025-04-30T08:07:11","guid":{"rendered":"https:\/\/pharosstory.com\/?p=551"},"modified":"2025-05-02T02:34:55","modified_gmt":"2025-05-02T02:34:55","slug":"martin-lewis-warns-uk-savers-over-20000-tax-free-isa-being-killed-off","status":"publish","type":"post","link":"https:\/\/pharosstory.com\/index.php\/2025\/04\/30\/martin-lewis-warns-uk-savers-over-20000-tax-free-isa-being-killed-off\/","title":{"rendered":"Martin Lewis warns UK savers over \u00a320,000 tax-free ISA being \u2018killed off\u2019"},"content":{"rendered":"<figure class=\"img-container shareable-item wp-caption\">\n<div class=\"img-wrap\">\n\t\t<img width=\"646\" height=\"363\" src=\"https:\/\/pharosstory.com\/wp-content\/uploads\/2025\/04\/SEC_247723710-ca1f.jpg\" class=\"article-image wp-image-22916816\" alt=\"\" loading=\"lazy\" \/>\t<\/div><figcaption>Rachel Reeves is rumoured to be considering dropping the cash ISA limit by \u00a316,000 (Picture: PA\/REX)<\/figcaption><\/figure>\n<p>As Chancellor <a data-track=\"inline-tag-auto-link_article\" href=\"https:\/\/metro.co.uk\/tag\/rachel-reeves\/\">Rachel Reeves<\/a> looks to evaluate cash <a href=\"https:\/\/metro.co.uk\/2024\/03\/18\/investing-experts-reveal-become-isa-millionaire-20472898\/\">ISAs<\/a>, <a data-track=\"inline-tag-auto-link_article\" href=\"https:\/\/metro.co.uk\/tag\/martin-lewis\/\">Martin Lewis<\/a> warns that the \u00a320,000 tax-free <a data-track=\"inline-tag-auto-link_article\" href=\"https:\/\/metro.co.uk\/tag\/savings\/\">savings<\/a> limit <a href=\"https:\/\/metro.co.uk\/2025\/04\/27\/20-000-isa-allowance-soon-disappear-ways-save-tax-free-22974813\/\" target=\"_blank\" rel=\"noreferrer noopener\">could be &#8216;killed off&#8217;<\/a> in the very near future.<\/p>\n<p>In a recent edition of his newsletter, the Money Saving Expert (MSE) founder added weight to rumours <a href=\"https:\/\/metro.co.uk\/2025\/03\/26\/spring-statement-mean-for-you-22797727\/\" target=\"_blank\" rel=\"noreferrer noopener\">the threshold will be cut<\/a> to just \u00a34,000 later in 2025.<\/p>\n<p>&#8216;It&#8217;s being talked about in political and policy circles,&#8217; he explained in a video. &#8216;What we don&#8217;t know is if anything has been decided &#8211; and if it has, <em>what <\/em>has been decided.&#8217;<\/p>\n<p>It&#8217;s likely any changes would be confirmed in October&#8217;s <a href=\"https:\/\/metro.co.uk\/2024\/10\/30\/winners-losers-autumn-2024-budget-21896818\/\">Autumn Budget<\/a>, but according to the consumer champion, &#8216;nothing is certain&#8217;.<\/p>\n<figure class=\"img-container shareable-item wp-caption\">\n<div class=\"img-wrap\">\n\t\t<img width=\"646\" height=\"431\" src=\"https:\/\/pharosstory.com\/wp-content\/uploads\/2025\/04\/GettyImages-1489926604.jpg\" class=\"article-image wp-image-22917696\" alt=\"Doing taxes\" loading=\"lazy\" \/>\t<\/div><figcaption>It&#8217;s worth evaluating your options (Picture: Getty Images)<\/figcaption><\/figure>\n<p>&#8216;The concept behind it is that it&#8217;d encourage people to put the money in shares ISAs instead,&#8217; he commented. &#8216;Personally, I&#8217;m sceptical if it&#8217;d work &#8211; many will just keep saving but pay more tax.&#8217;<\/p>\n<p>It&#8217;s a daunting prospect given an estimated 7.9 million Brits currently save <a href=\"https:\/\/metro.co.uk\/2025\/03\/10\/a-beginners-guide-isas-almost-half-us-missing-tax-free-money-22686504\/\">using a cash ISA<\/a>, which is exempt from tax up to on an annual allowance of \u00a320,000.<\/p>\n<p>And while the plans haven&#8217;t yet been confirmed by the Treasury, Martin has some advice to ensure your nest egg is protected regardless.<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube\">\n<div class=\"wp-block-embed__wrapper\">\n<p><iframe loading=\"lazy\" title=\"Martin Lewis: Is the \u00a320,000 cash ISA about to be killed off? And if so, what should you do\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/j-kzCMEdn8s?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<\/div>\n<\/figure>\n<p>The new tax year began on April 6, with the 2025\/2026 allowance meaning you can save up to \u00a320,000 in a cash ISA between now and next April.<\/p>\n<p>According to Martin, if the rumoured limit change does happen, it wouldn&#8217;t impact any money you&#8217;ve already deposited, &#8216;it&#8217;d just cut what you can put in, in future.&#8217;<\/p>\n<p>He continued: &#8216;Whether it&#8217;d start immediately, or in January or April 2026, no one knows (including at this point, I suspect, Rachel Reeves).<\/p>\n<p>&#8216;Yet if you plan to save in a cash ISA, all of this would suggest getting it in sooner would seem safer.&#8217;<\/p>\n<section class=\"metro-comment-cta\">\n<div class=\"metro-comment-cta__inner\"><span class=\"metro-comment-cta__text-wrap\"><title>Comment now<\/title><span class=\"metro-comment-cta__text\">Do you think the \u00a320,000 tax-free savings limit should be cut?<\/span><\/span><a class=\"metro-comment-cta__button\" href=\"#metro-comments-container\">Comment Now<\/a><\/div>\n<\/section>\n<p>However, he also urges people to take advantage of <a href=\"https:\/\/www.moneysavingexpert.com\/savings\/best-cash-isa\/\" target=\"_blank\" rel=\"noreferrer noopener\">the various offers and rates available<\/a>, and carefully consider the best provider for them.<\/p>\n<p>Appearing on This Morning, Martin claimed that the vast majority will benefit from using their ISA allowance, but recommended reviewing accounts taken out years ago.<\/p>\n<div class=\"factbox\" data-ico=\"factbox_article\" data-track-module=\"factbox_article\">\n<h2 class=\"factbox-title\">\n\t\t\t\tLearn more about ISAs\t\t\t<\/h2>\n<div class=\"factbox-content\">\n<p><a href=\"https:\/\/metro.co.uk\/2025\/03\/10\/a-beginners-guide-isas-almost-half-us-missing-tax-free-money-22686504\/\">How do tax-free ISAs work?&nbsp;A beginner&#8217;s guide<\/a><\/p>\n<p><a href=\"https:\/\/metro.co.uk\/2025\/03\/03\/many-cash-isas-can-rules-explained-22586993\/\">How many cash ISAs can you have? The allowance rules explained<\/a><\/p>\n<p><a href=\"https:\/\/metro.co.uk\/2024\/03\/18\/investing-experts-reveal-become-isa-millionaire-20472898\/\" target=\"_blank\" rel=\"noreferrer noopener\">Investing experts reveal how you can become an ISA millionaire<\/a><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<p>If &#8216;you&#8217;re in an absolutely pants cash ISA with a very low interest rate, which if you&#8217;ve had it for ten years&#8217;, he said it may be best to &#8216;get out&#8217; and <a href=\"https:\/\/metro.co.uk\/2025\/03\/21\/a-money-experts-guide-transferring-cash-isa-getting-a-better-deal-22687346\/\">switch to a better performing option<\/a>.<\/p>\n<p>Although the jargon around allowances, tax, and fixed rates may make it seem a little confusing, the MSE founder added: &#8216;A cash ISA is just a savings account you don&#8217;t pay tax on. Don&#8217;t overcomplicate it.&#8217;<\/p>\n<p>There is one thing you need to do differently when you&#8217;re moving ISA savings around though: always transfer rather than taking matters into your own hands.<\/p>\n<p>&#8216;You go to the new provider, and on the application form it will ask, &#8220;Do you want to transfer any money across?&#8221;&#8216; explained Martin. &#8216;That&#8217;s how you keep the ISA status. Do not just withdraw the money yourself.&#8217;<\/p>\n<p class=\"\"><strong>Do you have a story to share?<\/strong><\/p>\n<p class=\"\"><strong>Get in touch by emailing <a href=\"mailto:MetroLifestyleTeam@Metro.co.uk\">MetroLifestyleTeam@Metro.co.uk<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rachel Reeves is rumoured to be considering dropping the cash ISA limit by \u00a316,000 (Picture: PA\/REX) As Chancellor Rachel Reeves looks to evaluate cash ISAs, Martin Lewis warns that the \u00a320,000 tax-free savings limit could be &#8216;killed off&#8217; in the very near future. In a recent edition of his newsletter, the Money Saving Expert (MSE) [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":553,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"_links":{"self":[{"href":"https:\/\/pharosstory.com\/index.php\/wp-json\/wp\/v2\/posts\/551"}],"collection":[{"href":"https:\/\/pharosstory.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pharosstory.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pharosstory.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pharosstory.com\/index.php\/wp-json\/wp\/v2\/comments?post=551"}],"version-history":[{"count":3,"href":"https:\/\/pharosstory.com\/index.php\/wp-json\/wp\/v2\/posts\/551\/revisions"}],"predecessor-version":[{"id":556,"href":"https:\/\/pharosstory.com\/index.php\/wp-json\/wp\/v2\/posts\/551\/revisions\/556"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pharosstory.com\/index.php\/wp-json\/wp\/v2\/media\/553"}],"wp:attachment":[{"href":"https:\/\/pharosstory.com\/index.php\/wp-json\/wp\/v2\/media?parent=551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pharosstory.com\/index.php\/wp-json\/wp\/v2\/categories?post=551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pharosstory.com\/index.php\/wp-json\/wp\/v2\/tags?post=551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}