Savers urged to maximize Isa use after tax increases in UK Budget

In the recent Labour Budget, Chancellor Rachel Reeves announced £40 billion in tax increases, including hikes in capital gains tax. Despite fears, the annual tax-free Isa allowance remains at £20,000, frozen until April 2030. Savers are encouraged to utilize cash and stocks and shares Isas to protect their money from increased taxes. Interest rates on Isa accounts are currently as high as 5.1%, making them a vital tool for tax-efficient saving and investing. Investors can contribute up to £20,000 annually to stocks and shares Isas, shielding profits from capital gains tax. This is especially important as the tax rate for basic rate taxpayers has risen from 10% to 18%.