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A First Look at New ISA Rules

Our December 2025 article “Budget impact on ISAs” summarised some of the changes which will apply to ISAs with effect from April 2027. In particular we highlighted the restriction on Cash ISAs for under 65s, new rules on cash-like assets held within Stocks & Shares ISAs and a charge on interest paid on cash held in Stocks & Shares ISAs.

Now the government has issued further guidance in respect of the proposed changes. Their ‘anti-circumvention rules factsheet’ confirms that the advertised restriction on transferring from non-cash ISAs into cash ISAs as well as the upper limit of £12,000 for cash ISAs will only apply up to the start of a tax year in which an individual turns 65.  However, they have also said that the proposed 22% charge on interest paid on cash held in non-cash ISAs will apply to everyone, regardless of age. That charge is to be paid directly to HMRC by ISA providers. Furthermore, the personal savings allowance will not apply to interest paid in an ISA.

The current proposals are now subject to industry consultation with further clarification expected in the autumn.

If you are looking for advice on investments or if your situation has changed and you may therefore need to review your existing investments or pensions, contact Beckworth by using one of the links on our website.