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  "path": "/money/rachel-reeves-saver-isa-tax",
  "publishedAt": "2026-05-27T14:48:34.000Z",
  "site": "https://www.gbnews.com",
  "tags": [
    "Pension crisis as thousands face £245,000 savings gap in 'quadruple whammy' hit",
    "Rachel Reeves branded 'out of touch' as avocado and quinoa among 'essentials' set for tariff cuts",
    "Energy bill mistake costing Britons £248 in savings as millions brace for price cap hike",
    "The GB News Editorial Charter"
  ],
  "textContent": "\n\n\nChancellor Rachel is plotting a \"further blow\" to British savers as rumours circulate the Treasury is drafting a 22 per cent tax charge on ISAs.\n\nEarlier this week, reports circulated Ms Reeves is considering taxing the interest earned on cash holdings placed in stocks and shares ISA products.\n\n###\n\n\n\n\nThe proposed charge would come into effect from the 2027/28 tax year, alongside the previously confirmed reduction of the annual cash ISA allowance from £20,000 to £12,000 for savers aged under 65.\n\nThose aged 65 and over will retain access to the full £20,000 cash ISA limit under the new framework.\n\n###\n\n\n\n\n###\n\n\n\n\nThe overall ISA allowance of £20,000 will remain unchanged for younger savers, though they would need to split contributions between different ISA types.\n\nFor instance, an individual could deposit £12,000 in a cash ISA whilst placing the remaining £8,000 into a stocks and shares wrapper.\n\nRob Morgan, the chief investment analyst at Charles Stanley Direct, warned that the proposed measures risk undoing years of progress in making ISAs more accessible.\n\nHe said: \"The reforms aim to nudge savers towards investing rather than holding cash - a laudable aim. However, the suite of 'anti-circumvention' measures risks reversing much of the simplification of ISAs achieved in 2014, replacing it with a more restrictive and complex landscape.\"\n\n###\n\n\n\n\n### LATEST DEVELOPMENTS\n\n\n\n\n  * Pension crisis as thousands face £245,000 savings gap in 'quadruple whammy' hit\n  * Rachel Reeves branded 'out of touch' as avocado and quinoa among 'essentials' set for tariff cuts\n  * Energy bill mistake costing Britons £248 in savings as millions brace for price cap hike\n\n\n\n###\n\n\n\n\n###\n\n\n\n\nMr Morgan noted the proposed levy echoes arrangements that existed before George Osborne's reforms, when cash held in stocks and shares ISAs attracted a 20 per cent charge.\n\nHe added: \"Reintroducing a tax charge on cash within stocks and shares ISAs means blurring those lines once again.\n\n\"A product that has long been marketed as a straightforward, tax-free wrapper will come with a significant caveat, and it remains to be seen how much damage that will do to the clarity and appeal of the ISA 'brand'.\"\n\nHolly Mackay, chief executive of Boring Money, expressed concern that the shifting regulatory landscape would discourage potential investors at precisely the wrong moment.\n\n###\n\n\n\n\n###\n\n\n\n\nShe pointed to research showing financial confidence remains fragile across the UK, with 62 per cent of adults rating their confidence in opening a new investment product at five or below out of ten. Among those who do not currently invest, this figure rises to 72 per cent.\n\nMs MacKay said: \"If we are to pursue the Chancellor's ambition of creating a nation of investors, we cannot keep moving the goalposts and making ISAs as confusing as everything else.\"\n\nShe highlighted that contribution limits now differ across Junior ISAs, Lifetime ISAs, cash ISAs and stocks and shares ISAs, arguing that introducing additional complex regulations will put off first-time investors.\n\nKatie Horne, savings expert at Flagstone, described the potential 22 per ecnt levy as a further setback for savers already affected by the cash ISA allowance reduction.\n\nThe savings expert noted: \"Not only will the tax curtail the freedom savers have to make savings and investments that suit their personal, individual needs, but it also risks confusing and complicating a system that was created to simplify taking control of personal finances and developing good savings habits.\"\n\nResearch conducted by Flagstone and Opinium during the first quarter of 2026 found that 67 per cent of cash ISA holders favour them above all other savings options, whilst 66 per cent choose them over stocks and shares ISAs specifically to avoid putting their money at risk.\n\n###\n\n\n\n\n\n\n\n\n\n\n**Our Standards: The GB News Editorial Charter**",
  "title": "Rachel Reeves plots 'another blow' to savers as fears of ISA tax raid grow"
}