Overview
- AJ Bell chief executive Michael Summersgill wrote to Chancellor Rachel Reeves condemning the reforms as rushed and ineffective at boosting long‑term investing.
- The plan would lower the annual cash ISA allowance from £20,000 to £12,000 for under‑65s from April 2027, with over‑65s retaining the higher limit.
- Treasury and HMRC are drafting rules that would block transfers from stocks and shares or Innovative Finance ISAs to cash ISAs, test for ‘cash‑like’ assets, and levy charges on interest earned on cash held within investment ISAs.
- ISA providers have met officials to warn the measures add complexity and could push savers toward NS&I products or taxable accounts, with AJ Bell citing survey evidence for that shift.
- The government says it is engaging with industry and will publish guidance before the changes take effect, while several firms including AJ Bell have quit a separate industry campaign to promote retail investing.