HMRC has confirmed a major overhaul of Individual Savings Account rules that will affect millions of UK savers from April 2027. The changes, announced this week, include a new 22 percent tax charge on cash held inside Stocks and Shares ISAs and a significant reduction in the annual Cash ISA allowance for under-65s. Here is everything you need to know about the new ISA rules and what they mean for your savings. What Are the New HMRC ISA Rules? The most significant change confirmed by HMRC is the introduction of a flat-rate 22 percent tax charge on any interest earned on cash held inside a Stocks and Shares ISA or an Innovative Finance ISA. Until now, any interest earned inside an ISA wrapper has been completely tax-free. From 6 April 2027, that will no longer apply to uninvested cash sitting inside investment accounts. At the same time, the annual Cash ISA allowance for people under the age of 65 will be cut from £20,000 to £12,000. The overall ISA allowance of £20,000 per year rema...
HMRC has confirmed a major overhaul of Individual Savings Account rules that will affect millions of UK savers from April 2027. The changes, announced this week, include a new 22 percent tax charge on cash held inside Stocks and Shares ISAs and a significant reduction in the annual Cash ISA allowance for under-65s. Here is everything you need to know about the new ISA rules and what they mean for your savings. What Are the New HMRC ISA Rules? The most significant change confirmed by HMRC is the introduction of a flat-rate 22 percent tax charge on any interest earned on cash held inside a Stocks and Shares ISA or an Innovative Finance ISA. Until now, any interest earned inside an ISA wrapper has been completely tax-free. From 6 April 2027, that will no longer apply to uninvested cash sitting inside investment accounts. At the same time, the annual Cash ISA allowance for people under the age of 65 will be cut from £20,000 to £12,000. The overall ISA allowance of £20,000 per year rema...