The government has said it will charge customers on the interest on any cash holdings in stocks and shares ISAs to prevent people ‘circumventing’ the rules.
From 2027, those below the age of 65 will only be able to put £12,000 into a cash ISA each year, in a measure designed to encourage working-age savers into the stock market. However, over-65s will retain the full and existing £20,000 cash Isa allowance, in a sop to retirees.
In a statement from HMRC, the government has said that it will also introduce measures to prevent loopholes for the new limits.
