Long awaited reforms to ISAs were finally delivered by the Chancellor in this Budget.
From 6 April 2027, the annual ISA cash limit will fall to just £12,000, but an overall annual ISA limit of £20,000 will be retained.
This means that the remaining £8,000 allowance will need to be invested in stocks and shares ISA to benefit from the tax-free amount.
In a big mix up to both pensions and tax planning, the Chancellor announced that employer and employee National Insurance contributions will be charged on pension contributions above £2,000 per annum made via salary sacrifice.
This change will take effect from 6 April 2029, closing a window that many high earners have used to minimise their Income Tax liabilities, whilst increasing their lifetime pension savings.