Rachel Reeves Cash ISA Shake-Up: Skipton’s 4.55% Deal Lands As Savers Face 2027 Tax Hit
Skipton Building Society rolled out a new 18-month fixed-rate cash ISA on Monday, offering savers a 4.55% AER—currently one of the top deals as Rachel Reeves’ cash ISA reforms loom less than a year away. The annual equivalent rate remains the industry benchmark for comparing savings returns. Timing is key here. Starting April 6, 2027, adults younger than 65 will see their annual cash ISA allowance cut to £12,000 from £20,000. The overall £20,000 ISA cap won’t move, and those 65 or older will retain the full cash ISA limit. According to the Treasury, this tweak gets implemented through secondary legislation ahead of the rollout.