The UK tax authority HMRC will apply a new charge when the rule comes into effect in April 2027. Cash kept inside stocks and shares ISAs will incur a 22% tax on any interest earned. The measure targets savers who keep cash in these tax‑free wrappers. It seeks to stop the practice of using ISAs to protect interest without capital risk. Existing cash balances will be subject to the charge from the start date. The change will affect 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