From April 2027, anyone holding cash within a Stocks & Shares ISA will face a new 22% tax on the interest earned. This comes on top of Labour’s Budget announcement to cut the Cash ISA allowance for under-65s from £20,000 to £12,000.
Shadow Chief Secretary to the Treasury, Richard Fuller MP said:
Labour just do not understand how or why people save, nor do they seem to care.
For decades ISAs have been built on a simple promise - save responsibly and your returns are tax-free. Millions of people have planned their finances around that principle.
Not everyone wants to take greater investment risk with their savings. Many people hold cash within a Stocks & Shares ISA while waiting for the right investment opportunity or managing risk responsibly. Under Rachel Reeves, they are now being penalised for doing so.
And it all adds to extra complexity and extra costs.
You can read the media story in the Guardian at https://www.theguardian.com/money/2026/jun/23/hmrc-announces-22-tax-on-cash-interest-held-in-stocks-and-shares-isas?CMP=share_btn_url
