UK Financial News update
Stories of the week
1) Cash ISA restrictions: still going ahead (and the “avoidance rules” matter)
The Government has reiterated that the Cash ISA allowance will be cut to £12,000 (from £20,000) for under-65s, with the change due to start 6 April 2027, despite pushback about consumer flexibility.
Wiseones take: the headline cut is only half the story. The practical impact will hinge on how “anti-circumvention” is handled (eg, cash-like holdings inside S&S ISAs, transfers between ISA wrappers, platform cash facilities). The industry has already been gaming out loopholes and how HMRC/Treasury might close them even with talks of a 22% tax of cash in the ISA.
2) FCA Targeted Support: guidance… with a steering wheel (aka “Signpost Plus”)
The FCA’s targeted support regime is designed to sit between guidance and full regulated advice. It is letting firms give suggestions to groups of consumers who share characteristics, without doing a full personal suitability process.
Key timings:
Permissions window opens: March 2026
Rules expected live: 6 April 2026 (subject to legislation)
Wiseones take:
Done well, it could genuinely widen access for people who currently get nothing following the implementation of Consumer Duty; the ‘Advice Gap’.
Done badly, it risks becoming “cheap steerage”: light-touch nudges that feel like advice, deliver limited value, but still create sticky customer pipelines (and fees) the “cash cow for not much help” problem.
Expect a lot of focus on definitions, guardrails, permissions, and liability as firms try to scale it.
3) Crypto ETNs / complex ETPs: FCA waves the caution flag (again)
This week the FCA published findings on how firms sell complex ETPs to retail, highlighting weak appropriateness checks and unclear risk disclosures at some firms.
Crypto ETNs sit inside that conversation:
Retail access to certain crypto ETNs (cETNs) was lifted (with conditions).
In practice, UK retail access on mainstream platforms has largely focused on Bitcoin and Ethereum-referencing ETPs/ETNs, and LSE notes the market has built out quickly.
This looks like it is going to get messy with existing Crypto in ISA wrappers and the launch of Innovative Finance ISAs that will hold crypto, if any provider brings one to market.
Consultation watch: the FCA is also pushing forward broader crypto regulation via its roadmap/consultation programme, with an industry consultation window running into February 2026.
Rate watch
Bank of England Bank Rate: 3.75%
UK mortgage rates (typical averages):
2-year fixed (75% LTV): ~4.48%
5-year fixed (75% LTV): ~5.01%
UK GDP +1.4% November 2024 to November 2025
UK Inflation Rates year on year
UK CPI – 3.2%
UK CPIH – 3.5% (including housing costs)
UK RPI – 3.8%
Upcoming dates for your diary
January 2026
31 Jan 2026 – Self Assessment deadline (online filing + balancing payment; payments on account where applicable)
February 2026
12th Feb 2026 – Crypto consultation closes (as referenced in current FCA/UK crypto policy consultation cycle)
March 2026
3 Mar 2026 – UK Spring Forecast + OBR Economic & Fiscal Outlook
Wise Money Tips
(The tax year ends Sun 5 April 2026, but Good Friday is 3 April and Easter Monday is 6 April, so admin cut-offs land earlier.)
Use your “use-it-or-lose-it” ISA allowance: up to £20,000 across ISAs in 2025/26 (frozen until April 2031). Don’t forget JISA £9,000 and LISA £4,000 (also frozen to April 2031).
Dividend tax is rising from 6 April 2026: ordinary rate 8.75% → 10.75% and upper rate 33.75% → 35.75% (additional stays 39.35%). If you hold income shares outside wrappers, consider whether ISA/pension sheltering is worth it.
Top up pensions before year-end (and check carry-forward): the annual allowance is £60,000 for 2025/26 (tapering can apply for higher earners).
VCT timing matters this year: from 6 April 2026, VCT income tax relief drops to 20% (from 30%). VCT relief can’t be carried back, so if you want 2025/26 relief, the subscription needs to be in before year-end (practically by 2 April).
EIS/SEIS investors: unlike VCT, EIS/SEIS relief can usually be carried back to the previous tax year (useful if your tax bill is lumpy).
Use key “small but real” allowances: Personal Savings Allowance (£1,000/£500/£0 depending on band), Marriage Allowance transfer, and the £3,000 annual IHT gifting exemption (resets each tax year).
State Pension uplift from 6 April 2026: full new State Pension rises £230.25 → £241.30/week; basic State Pension £176.45 → £184.90/week
Quick check: NI record (especially age 50+): a top-up year can materially improve your State Pension outcome, it is worth checking your forecast and gaps before you start making irreversible year-end decisions
Nice concise and informative roundup for the week