The UK tax authority HMRC will impose a new charge when the rule starts in April 2027. Cash held inside stocks and shares ISAs will incur a 22% tax on any returns earned. The measure aims at savers who keep cash in these tax‑free wrappers. It aims to stop the practice of using ISAs as a shelter for interest without market risk. Existing cash balances will be subject to the charge from the start date. The change will impact new and existing accounts alike.
Latest News About UK to charge interest on ISA cash from 2027
Sources & References
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Savers Face New 22% ISA Tax Under Government Reforms - NATIONAL NEWS - The Leamington Observer
Savers Face New 22% ISA Tax Under Government Reforms - NATIONAL NEWS The Leamington Observer
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New charge to stop Isa savers bending bending the rules - The Scotsman
New charge to stop Isa savers bending bending the rules The Scotsman
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Labour's Latest Raid on Savers: New ISA Tax to Hit Millions - conservativepost.co.uk
Labour's Latest Raid on Savers: New ISA Tax to Hit Millions conservativepost.co.uk