Concerns raised over potential tax on cash held in Stocks & Shares ISAs – reports

According to reports by the FT, HM Revenue & Customs (HMRC) could seek to introduce a 20% charge on cash and ‘cash-like' instruments held in the wrapper. This follows the Cash ISA reforms set out by Chancellor Rachel Reeves which, from April 2027, would cut the annual allowance from £20,000 to £12,000 for people under the age of 65, with the remaining £8,000 mandated to be invested. According to the FT, the rules will include a charge on any interest paid in cash held in a Stocks & Shares ISA or Innovative Finance ISA, with the introduction of a test to determine whether an investment...