UK Considers Reducing Cash Portion of £20,000 ISA Allowance

The UK government is planning to reduce the amount of cash savers can put in tax-free accounts in a bid to create a US culture of retail investing among British households, according to Chancellor of the Exchequer Rachel Reeves.

People in the UK can currently add as much as £20,000 ($26,700) a year to Individual Savings Accounts, choosing whether to keep it as cash, investments or a blend of the two. In an emailed statement following a discussion on the subject in Parliament on Tuesday, Reeves said: “At the moment, there is a £20,000 limit on what you can put into either cash or equities, but we want to get that balance right.”