{"id":122166,"date":"2026-06-24T10:45:36","date_gmt":"2026-06-24T09:45:36","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=122166"},"modified":"2026-06-24T10:45:38","modified_gmt":"2026-06-24T09:45:38","slug":"isa-hmrc-tightens-savings-rules","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/isa-hmrc-tightens-savings-rules\/","title":{"rendered":"Big Changes Coming to ISAs as HMRC Tightens Savings Rules"},"content":{"rendered":"\n

HM Revenue and Customs has announced new ISA reforms<\/strong> that include a 22% tax<\/strong> on interest earned<\/strong> from cash held within stocks and shares ISAs<\/strong>, alongside wider changes to savings rules and the introduction of a new first-time buyer ISA with no upper age limit, as part of a broader consultation on how tax-free savings products are used across the UK.<\/p>\n\n\n\n

Tax Charge On Cash Held Inside Investment ISAs<\/h2>\n\n\n\n

Under the new proposals, interest generated on cash balances held within stocks and shares ISAs will be subject to a 22% tax charge<\/strong>. The measure is intended to prevent cash savings from benefiting from tax advantages designed for investment products.<\/p>\n\n\n\n

HMRC<\/a> also plans to limit the share of stocks and shares ISAs that can be held in money market funds, which are often used as cash-like, low-risk holdings within investment accounts. The rules aim to reinforce the distinction between cash savings and investment activity within ISA structures.<\/p>\n\n\n\n

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New First-Time Buyer ISA Plan<\/h2>\n\n\n\n

A new ISA for first-time buyers will be introduced and made available to individuals aged 18 and over<\/strong>, with no upper age limit<\/strong>. This replaces previous schemes that included age restrictions.<\/p>\n\n\n\n

The account will provide a 25%<\/strong> government bonus when funds are used towards purchasing a home. Unlike earlier versions of similar schemes, the bonus will only be paid at the point of property purchase rather than annually.<\/p>\n\n\n\n

Withdrawals for non-property purposes will not carry the previous penalty structure, marking a change in flexibility compared with earlier ISA products.<\/a><\/p>\n\n\n\n

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Government will tax ISAs at 23%. Another blow to savers. More money to spend on welfare.<\/p>— Alan Sked (@profsked) June 23, 2026<\/a><\/blockquote>