Overview
- Officials are developing anti‑avoidance rules that could ban transfers from stocks and shares or Innovative Finance ISAs to cash ISAs, introduce tests for ‘cash‑like’ assets, and cap or charge interest on cash held within investment ISAs.
- Citywire reported HMRC had even floated a cap on interest earned on cash inside stocks and shares ISAs to push savers toward investing, though no threshold was specified.
- Industry figures including Interactive Investor, the Building Societies Association and Kaldi warn the proposals risk confusing savers, restricting flexibility and discouraging first‑time investors.
- AJ Bell’s chief executive condemned the plans as over‑complex and ineffective, citing research that many savers would switch to NS&I or taxable cash and highlighting an estimated three million people with at least £20,000 in cash ISAs and nothing in investments.
- Administrative options discussed reportedly include applying any charges via self‑assessment or through PAYE using provider‑supplied data, and the government has said guidance will be published before the changes begin.