Treasury officials have consulted financial services executives on plans to limit the amount savers can hold in tax-free ISA accounts, with one suggestion being to cap it at £100,000, the Sunday Telegraph reports.

The current annual limit on how much savers can put into ISAs is £11,520, half allowed in deposits and half in investments.

Although ISA millionaires are still relatively rare, according to the newspaper, those savers that hold more than £100,000 in ISAs are more common.

An eventual cap could affect as many as 2% of investment ISA savers, it suggested.

Officials are also mulling over reducing the amount that pension savers can take from their pot at age 55.

Currently 25% can be taken out tax-free as a lump sum with plans to change the rules including reducing the amount to 20% or capping it at a certain amount.

A Treasury spokesman told the Sunday Telegraph: “As you would expect, there will be plenty of discussions going on about pensions tax relief, but reducing the lump sum is not within the thinking on those conversations.

“Over the course of the summer, the Treasury did go out in listening mode but officials weren’t putting proposals forward.”