The UK tax authority HMRC will introduce a new charge when the rule starts in April 2027. Cash kept inside stocks and shares ISAs will be subject to a 22% tax on any returns earned. The measure focuses on savers who keep cash in these tax‑free accounts. It seeks to stop the practice of using ISAs as a shelter for interest without market risk. Existing cash balances will be liable for the charge from the start date. The change will impact new and existing accounts alike.
Latest News About New ISA cash tax rule set for 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