What happened
The UK Budget announced a temporary increase in the Bank Corporation Tax Surcharge from 3% to 6%, running from 1 January 2027 to 31 March 2028. It also retained the annual Cash ISA subscription limit at £20,000. The surcharge is one component of bank taxation; this is not a doubling of the entire corporate tax rate. The £20,000 Cash ISA limit is retained from 6 April 2027. The Budget separately proposes a two-percentage-point increase in tax rates on savings income from that date.
Why your money cares
The change can affect bank earnings, while the ISA decision concerns eligible UK savers. These are separate issues. A protected ISA allowance is not a guarantee about interest rates, investment returns or deposit-protection limits.
What to watch
Check the effective dates and eligibility rather than treating an announcement as an immediate change to your account. For households outside the UK, these are UK-specific rules, not EU-wide allowances.
Sources & editorial context
HM Treasury’s Budget specifies the surcharge period and the Cash ISA measure. The original graphic uses “bank tax” as shorthand for the surcharge.
Educational content only—not personal financial, investment, tax or legal advice. News reflects the information available on the dates shown; terms and circumstances can change.
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