Anyone with a Cash ISA, pension or savings given new update after tax year change | Personal Finance | Finance

An update has been issued to Cash ISA holders, pension savers and those with savings accounts following the change of tax year this week.

The tax year changes every year on April 6. It means that for various savings, tax, pensions and other rules and limits, the new financial year brings a new set of allowances to be followed, to avoid the shock of a nasty tax bill later down the line. Financial experts at investment platform Hargreaves Lansdown have issued guidance to its customers about what it all means for people with Cash ISAs, Stocks and Shares ISAs, private pension funds, savings and other financial products for this tax year, running from April 6, 2025 to April 5, 2026.

Despite widespread speculation that Cash ISA limits were about to be altered by Chancellor Rachel Reeves, they remain set at £20,000 for the year. But there are a raft of rules and limits to be aware of for the new tax year.

In a message to customers seen by the Express, Hargreaves Lansdown said: “The new tax year is here. To help you make the most of your money this year, here’s a straightforward overview of tax allowances for 2025/26.

“ISA Allowance: Remains at £20,000 across all ISAs, including a £4,000 allowance for Lifetime ISAs. You can now open more than one ISA of the same type in a tax year.

“Pension Annual Allowance: Remains at £60,000 but can be as little as £10,000 for high earners or if you’ve accessed a pension.

“Junior ISA Allowance: Invest up to £9,000 in a child’s future.

“Personal Allowance: Earn up to £12,570 before paying tax.

“Dividend Allowance: Remains at £500 this tax year. Any income received from dividends above the allowance is subject to tax at your marginal rate.

“Capital Gains Tax Allowance: Remains at £3,000. The profit or gain made when you sell or transfer an asset that’s increased in value since you acquired it, which is above this allowance, is subject to tax.

“Personal Savings Allowance: The amount of interest you can earn on your savings before you must pay tax on it is £1,000 for basic rate taxpayers, and £500 for higher rate taxpayers.”

It added: “This is information only, and not advice. If you’re not sure what’s right for you, please seek advice. Tax rules can change, and benefits depend on personal circumstances.”