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UNDER THE CURRENT RULES, YOU CAN DEPOSIT £20,000 INTO ISAS ACROSS A YEAR, WITH THE LABOUR PARTY REPORTEDLY EYEING A CUT. 07:20, 22 May 2025 A major update has been issued over the cash ISA

allowance amid rumours of a cut from Rachel Reeves. Under the current rules, you can deposit £20,000 into ISAs across a year, with the Labour Party reportedly eyeing a cut. Lord Livermore

said: "The Government is committed to incentivising greater saving and investment, to help people save for their future goals and build greater financial resilience. The Government

offers a generous tax treatment on Individual Savings Accounts (ISAs) to support people of all incomes and at all stages of life to save. "Individuals can currently save or invest up to

£20,000 per year in an ISA, with all income and gains received in the wrapper received tax-free." READ MORE UK FACES 27C HEATWAVE NEXT WEEK WITH 33 COUNTIES IN ENGLAND SET TO SIZZLE

The Lord went on: "The Financial Services Growth & Competitiveness Strategy Call for Evidence, which closed on 12 December, asked how increasing retail participation in capital

markets could support long-term sustainable growth within the sector and the wider economy. Article continues below "The call for evidence welcomed further evidence on how to improve

consumer engagement with investing, and the Government is considering the feedback provided. "The Government is looking at options for reforms to ISAs that get the balance right between

cash and equities to earn better returns for savers, boost the culture of retail investment, and support the growth mission. "The Government keeps all aspects of tax and savings policy

under review." The update from the Lord came in the Lords after a question from a fellow member. Article continues below Lord Lee of Trafford reached out "tTo ask His

Majesty's Government how tax relief through independent savings accounts allowing investment overseas contributes to (1) the UK economy, or (2) the growth agenda." It comes after

it emerged the annual tax-free Isa allowance will not be cut from £20,000 but the door is open for changes to the cash version, comments from the Chancellor suggest. Rachel Reeves said in an

interview with the BBC Newscast Podcast, she said: 'I'm not going to reduce the limit of what people can put in Isas'.