Overview
- The overall £20,000 annual ISA allowance remains, with up to £8,000 required to be placed in stocks and shares ISAs once the cash cap applies.
- Treasury minister Lucy Rigby said existing cash ISA balances will not be affected by the change.
- Following a technical consultation, new ISA regulations will be laid and a Tax Impact and Information Note is due in the spring.
- Conservative MP Wendy Morton asked the Treasury to assess how many savers will be affected and their demographic profile, as well as potential alternative incentives.
- A government document indicates anti-circumvention steps from 2027, including a charge on interest paid on cash held inside stocks and shares or Innovative Finance ISAs, with detailed rules still to be set out.