The UK tax authority HMRC will introduce a new charge when the rule comes into effect in April 2027. Cash sitting inside stocks and shares ISAs will attract a 22% tax on any interest earned. The measure targets savers who keep cash in these tax‑free accounts. It intends to stop the practice of using ISAs to shelter interest without market risk. Existing cash balances will be liable for the charge from the start date. The change will hit new and existing accounts alike.
Latest News About HMRC to tax cash in ISAs from 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