HMRC confirms that a new 22% charge will apply to some ISA savings starting from April 2027. The change is linked to reforms that cut the annual Cash ISA allowance for many savers. Under the planned rules, the annual Cash ISA limit is reduced from £20,000 to £12,000 for under-65s. HMRC says the charge is designed to stop people using Stocks and Shares ISAs as a workaround for the lower Cash ISA limit, effectively preventing them from parking cash savings in an ISA structure that is not subject to the same cash allowance restrictions.
Both reports describe the same purpose for the policy: to address “backdoor” cash saving behaviour where savers might otherwise shift money into Stocks and Shares ISAs instead of making use of the cash ISA allowance. The outlets also agree on the headline figure for the new levy and the start date of April 2027, framing the measure as part of a broader set of ISA allowance changes.
