Isa rule changes announced in Budget – what are they and how will they affect your money?

• Chancellor John Healey has reversed previous plans to cut the annual cash ISA subscription limit from £20,000 to £12,000 in his first Budget.
• A new First Time Buyer ISA will launch in April 2029 to replace the Lifetime ISA, keeping the £4,000 contribution limit and £450,000 property price cap while calculating the 25 per cent bonus on the final balance.
• The penalty for non-housing or non-retirement withdrawals from Lifetime ISAs is being reduced from 25 per cent to 20 per cent to prevent savers losing their original capital.
• The government will conduct an industry consultation on a planned starter ISA aimed at encouraging cash savers to move into investing.
• Questions remain over whether planned tax charges on cash held within stocks and shares ISAs will still proceed following the cash ISA limit reversal.

IN FULL

Every ISA rule change in the Budget – and what it means for your money