HMRC’s proposed anti-circumvention ISA rules risk discouraging people from investing by making the tax-free savings system more complex and creating perverse incentives, according to wealth experts.
Senior analysts and executives at investment platforms have argued the planned measures could create additional barriers for the cautious savers they are intended to attract. The new rules, set to take effect from 6 April 2027, are designed to prevent people using stocks & shares ISAs to circumvent a reduced cash ISA allowance while encouraging more long-term investment. They include a 22% charge on interest from uninvested cash in stocks & shares ISAs as well as a prohibition on the use of "cash like" investments – currently money market funds – to hold the entirety of savings in suc...
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