Changes to tax Stocks and Shares ISAs before April 2027 – A great way to mitigate tax by investing in stock and shares

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Tax - ISA image - mobile phone with stocks and shares and accounts on the screen

Update 26/06/2026 Tax on Cash In Stocks ISAs is set at 22%

Good news and bad news… HMRC has dropped the Cash ISA limit to £12,000 from 6th April 2027 for peoples under 65 years old. They’re also considering charging tax on any cash you keep in your Stock and Shares ISA because you need to hold cash in your Stock and Shares ISA so you can trade the shares easily.

Here’s the link to prove it. Not law yet, but on its way quite soon allegedly.

Extract from the “https://www.gov.uk/government/publications/tax-free-savings-newsletter-19/tax-free-savings-newsletter-19-november-2025“

The following rules will be introduced to avoid circumvention of the lower limit for cash ISAs: no transfers from stocks and shares and Innovative Finance ISAs to cash ISAs, tests to determine whether an investment is eligible to be held in a stocks and shares ISA or is ‘cash like’, a charge on any interest paid on cash held in a stocks and shares or Innovative Finance ISA

They didn’t mention this on budget day. Oh what a tangled web we weave!

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