economy
HMRC announces 22% tax on cash interest held in stocks and shares Isas
Treasury also promises a new first-time buyer Isa with no upper age limit, as the ‘age at which a first home is bought is rising’
TL;DR
- A new first-time buyer Isa will be available to individuals over 18, removing the upper age limit found in the Lifetime Isa.
- The government bonus for the new first-time buyer Isa will be paid upon property purchase, not annually.
- A 25% penalty for withdrawing funds from the first-time buyer Isa for reasons other than purchasing a home will be removed.
- From April 2027, under-65s will have an annual limit of £12,000 for cash Isa savings.
- Interest earned on cash held within stocks and shares Isas will be taxed at 22% starting April 2027.
- Restrictions will be placed on holding over 100% of a stocks and shares Isa in money market funds.