Martin Lewis has urged savers to make the most of their tax-free Isa allowance before the end of the financial year on 6 April. The personal finance expert highlighted that the annual £20,000 allowance does not carry over, making it essential to use it before the deadline.
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Speaking on ITV's The Martin Lewis Money Show, Lewis said: 'The reason it’s getting urgent right now is your annual allowance doesn’t carry over. And if you don’t use it, you lose it.' He added that once savings are in an Isa, they remain tax-free year after year.
Isas have been available since 1999, with the annual limit rising to £20,000 in 2017. However, Chancellor Rachel Reeves announced in November that the cash Isa limit will be reduced to £12,000 from April 2027, while the stocks and shares Isa limit will remain unchanged. The change is intended to encourage younger savers to invest, with over-65s exempt.
According to HMRC data, there were nearly 10 million active cash Isa accounts in 2023-2024, an increase of 2.1 million from the previous year.
