New rules will be introduced to prevent savers from bypassing the upcoming lower limit on cash ISAs.

Guidance published on the HM Revenue and Customs (HMRC) website said rules will be introduced "to avoid circumvention of the lower limit for cash ISAs".

These rules are expected to include charges on interest earned on cash held within stocks and shares ISAs, as well as checks to determine whether money is being kept in "cash-like" accounts.

At present, adults can save up to £20,000 each year across cash ISAs, stocks and shares ISAs, or a combination of both.

However, the government announced in the budget that, from April 2027, the annual cash ISA allowance for adults will drop to £12,000.

Only savers aged 65 and over will keep the full £20,000 cash ISA limit.

The overall adult I

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