Reeves' rumoured ISA reforms risk 'harm' and diversification issues

Concerns over rumoured £10k cash ISA cap and potential UK equity mandate

Sahar Nazir
clock • 5 min read

The government’s rumoured ISA reforms could create complexity and risk limiting diversification, despite the policy’s aim of boosting investment in the UK, financial planners have warned.

Recent reports suggested that chancellor Rachel Reeves is considering halving the £20,000 annual ISA allowance, introducing a £10,000 cap on cash ISAs, and mandating a minimum level of UK equity exposure within stocks and shares ISAs. ‘The devil will be in the detail for ISA reform' While the Treasury has not confirmed any details, advisers have been quick to question the potential implications for investors and the advice process. Connor Broadley financial planner Alice Sanders said the impact of a UK equity mandate would depend heavily on its scope, warning it could disrupt invest...

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