Clear Financial Advice

24/06/2026

ISA Changes Confirmed from 6 April 2027 – What Savers Need to Know

The Government has confirmed significant changes to the ISA regime from 6 April 2027.

Key points include:
• The overall annual ISA allowance remains at £20,000.
• For individuals aged under 65, the maximum annual subscription to a Cash ISA will reduce from £20,000 to £12,000.
• For those aged 65 and over, the Cash ISA allowance will remain at £20,000.
• Existing ISA holdings are unaffected. The new rules apply only to contributions made from 6 April 2027 onwards.
• To prevent circumvention of the new limits, the Government has confirmed:
No transfers from Stocks & Shares ISAs or Innovative Finance ISAs into Cash ISAs.
A 22% charge on interest earned on cash held within non-Cash ISAs.
Restrictions on using non-Cash ISAs solely for cash-like investments.

The Government's stated objective is to encourage greater participation in long-term investing whilst preserving flexibility for legitimate investment activity.

The debate now shifts from taxation to suitability.
For many investors, particularly those approaching retirement or seeking to preserve capital, cash is not simply a savings vehicle but an important risk-management tool. The challenge for advisers will be balancing client objectives, attitude to risk and capacity for loss against a changing tax landscape.

The detail of the final legislation will therefore be critical, particularly regarding the treatment of cash holdings and cash-like assets within investment wrappers.

Source: HM Treasury & HMRC ISA Reform Announcements, effective 6 April 2027.

05/06/2026

IF YOU OWN A PENSION, READ THIS OR IGNORE IT AT YOUR PERIL!

Please ensure that you complete the Expression of Wish for every pension you own to ensure the proceeds of your pension pass to whoever you wish to benefit, as this sits outside of your Will.

Plus, from April 2027 all unused pension funds will form part of your estate for Inheritance Tax. It is therefore becoming very important to consolidate pensions where possible to make life easier for the executors/personal representatives of your estate, as it is going to be so much more involved and complicated even for the simplest of estates. To the extent where the executors/personal representatives are also personally liable for the Inheritance Tax bill, which means they might have to place a retention on at least half of your pension fund to ensure the liability (if any) is paid, which will unfortunately delay the money passing to your intended beneficiaries.

If you, your colleagues, friends, family or even your clients wish to find out more, don’t hesitate to get in touch because this is a massive change in legislation that is having huge implications, especially here in the southeast of England with house prices being so much greater.

For a single person, with no children the Inheritance Tax threshold is only £325,000, whereas a married couple with children the threshold can be up to £1 million – but bear in mind Inheritance Tax is levied at 40% on all worldwide assets, so it doesn’t take a lot to breach these thresholds. There are possible solutions to alleviate the tax bill, but there is no silver bullet, or a one-size fits all type solution, as everybody’s situation is different – the main thing is not to let HMRC take more than they are entitled to.

The worst thing you can do is nothing, so get in touch and find out how much of an issue this could be for you and your family.

03/06/2026

Needless to say, if you would like a pension review please get in touch.

A newly-published report suggests a moderate lifestyle in retirement costs £32,700 for one person and £45,400 for two.

24/05/2026

If only the allowances had kept pace with inflation!

16/04/2026

With the Finance Bill submitted and approved, Inheritance Tax will be applied and assessed with effect from April 2027 to include your pension funds.

If you would like to see what your potential Inheritance Tax (IHT) liability might be, please use our free IHT calculator by clicking on the link below.



https://clear-financial-advice.iht.ningi-labs.co.uk/

07/04/2026

Data from the latest Freedom of Information (FoI) request to the Ministry of Justice shows that the number of probate cases taking between 21 and 23 months to be granted has risen by 131% since 2020/21.

With probate delays potentially leaving families waiting months or even years to access estates, the situation is likely to worsen further when pensions are brought into the scope of inheritance tax (IHT) from April 2027.

Given how stretched the probate system already is, anything people can do now to reduce complexity will help their executors navigate the process more quickly, avoid unnecessary costs and reduce stress at an already difficult time.

One of the most effective ways to reduce the burden on executors is to treat the start of the new tax year as a time to do a financial MOT. That might include consolidating old pensions or ISAs, keeping a clear record of accounts and providers, ensuring beneficiary nominations are up to date, and putting powers of attorney in place.

Don't forget to make full use of our Financial Passport which can be found here

Financial Passport Given the largely paperless nature of modern life, the likelihood of having a box file containing details of who your insurers are, who y ...