Martin Lewis has issued a stark reminder for UK savers to make use of their £20,000 ISA allowance before the end of the tax year on 5 April. The financial expert, writing on his Money Saving Expert website, urged: “It’s use it or lose it time! Top cash ISAs pay 4.68 per cent, beating normal savings, though long-term shares ISAs are likely the winner.”
An Individual Savings Account (ISA) allows savers to earn tax-free interest, with an annual cap of £20,000 for the 2025/26 tax year. While the cap is expected to remain unchanged for the following year, savers must act before 5 April to maximise this year’s allowance. Lewis warned that some providers close their virtual doors early, so leaving it to the last minute is not advisable.
Lewis explained that each adult in the UK receives a £20,000 allowance each tax year, which can be placed in a cash ISA, a stocks and shares ISA, or split between both. He used a cake analogy to illustrate the benefit: “Think of an ISA wrapper like a protective piece of clingfilm… once your cash is inside, the tax collector can’t eat any.”
From 6 April 2027, the annual cash ISA limit for those under 65 will drop to £12,000 under a new dual-tier system. The overall ISA allowance will remain £20,000, but the remaining £8,000 must be invested in stocks and shares or innovative finance ISAs.
