Are Britain’s savers running out of tax shelters? Matthew Jones, Britannia Bullion urges long-term planning as ISA confusion grows

More than two-thirds (67%) of UK savers do not know or are unsure what the annual ISA allowance is, according to the latest 2026 NatWest Savings Index[i],  raising concerns that many people may be unaware of how changes to savings and investment rules could affect their long-term financial plans.

The findings come as recent reforms have reduced the amount that people under 65 can hold in Cash ISAs and following a series of changes that have seen Capital Gains Tax allowances cut, dividend allowances reduced and pension rules repeatedly altered.

Matthew Jones, Co-Founder and Precious Metals Analyst at Britannia Bullion, believes the latest ISA changes are part of a broader trend that highlights the need for savers to build flexibility into their long-term plans.

“Most people build their financial plans around the rules that exist today, which is perfectly sensible,” he said. “The challenge is that retirement planning often spans decades, while tax rules can change multiple times during that period.

“The reduction in Cash ISA allowances is not a major issue on its own. What it does highlight is that financial allowances and tax incentives are never guaranteed to remain the same. Savers need to think about whether their plans would still work if the rules changed again in five, 10 or 20 years’ time.”

While none of these individual changes are necessarily dramatic, Jones says their cumulative effect has reduced the range of tax-efficient options available to investors.

“When you look at the changes made over the past decade, there is a clear trend towards a less generous tax environment for savers and investors,” he said.

Jones says the wider lesson for savers is that tax allowances and incentives can change over time, making it important to build financial plans that can adapt to changing rules.

The changing landscape is also prompting some investors to focus more closely on the underlying assets they hold rather than the tax wrappers surrounding them.

One asset some investors continue to consider is physical gold. Certain British legal tender gold coins are exempt from Capital Gains Tax for UK residents, while investment-grade gold is also exempt from VAT.

“Gold is not suitable for everyone and its value can go down as well as up,” Jones said. “However, one reason some investors continue to hold physical gold is that its tax treatment is linked to the asset itself rather than a government-sponsored savings scheme.

“In a world where tax rules, allowances and legislation can change over time, some investors value the simplicity of owning a tangible asset that sits outside the banking system and does not rely on a particular tax wrapper to maintain its advantages.

“For investors looking to diversify their holdings and preserve wealth over the long term, this can provide an additional level of certainty at a time when many traditional allowances have become less generous.”

Jones stressed that gold should be viewed as part of a broader diversified portfolio rather than a replacement for ISAs or pensions.

“The key message isn’t that people should abandon ISAs or pensions. They remain valuable tools,” he said. “It’s simply a reminder that financial planning should be flexible enough to cope with changing rules, because history shows that tax rules rarely stand still forever.”