{"id":1050660,"date":"2026-06-26T05:11:20","date_gmt":"2026-06-26T05:11:20","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/1050660\/"},"modified":"2026-06-26T05:11:20","modified_gmt":"2026-06-26T05:11:20","slug":"pensioners-to-be-hit-with-22-tax-on-isa-savings-in-parting-gift-from-rachel-reeves","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/1050660\/","title":{"rendered":"Pensioners to be hit with 22% tax on ISA savings in ‘parting gift’ from Rachel Reeves"},"content":{"rendered":"

Pensioners face a 22 per cent tax levy on interest earned from cash holdings within their stocks and shares ISAs from next April.<\/p>\n

The announcement comes despite older savers being granted an exemption from the Chancellor’s reduction of the annual cash ISA allowance, which will fall from \u00a320,000 to \u00a312,000.<\/p>\n

A late amendment during November’s Budget preserved the full \u00a320,000 cash ISA limit for those aged 65 and above.<\/p>\n

Yet these same investors will still be subject to the new charge on uninvested cash sitting in their investment accounts, alongside fresh regulations governing “cash-like” assets.<\/p>\n

\"Rachel<\/p>\n

Pensioners to be hit with 22% tax on ISA savings in ‘parting gift’ from Rachel Reeves<\/p>\n

| GETTY <\/p>\n

Financial experts have raised concerns that these measures could disproportionately harm older savers who need to reduce their exposure to market volatility.<\/p>\n

Jason Hollands, a managing director at investment coaching firm Bestinvest, said: “The restrictions will be particularly problematic for older investors who are seeking to de-risk gradually rather than making wholesale portfolio changes.” <\/p>\n

Helen Morrissey, the head of retirement analysis at Hargreaves Lansdown, said: “The levying of a 22 per cent charge on interest on cash held in stocks and shares ISAs may give some older investors pause for thought about their ability to de-risk their portfolio in times of stock market turbulence.” <\/p>\n

She noted that investors could still place the majority of their holdings into low-risk money market funds or transfer assets into cash ISAs.<\/p>\n

\"MelSir Mel Stride is the Conservatives’ shadow chancellor | GB NEWS\"StateHow the state pension triple lock has changed over the years | GB NEWS\/FIDELITY INTERNATIONAL<\/p>\n

Sir Mel Stride, the shadow chancellor, branded the measures “Rachel Reeves’s parting gift” in his response on Tuesday.<\/p>\n

He added: “Labour are punishing people who have done exactly what governments have long encouraged them to do.” <\/p>\n

Wealth managers have warned that the reforms may prove unnecessary and could make investment ISAs considerably more difficult for customers to navigate.<\/p>\n

Some industry figures have suggested the changes might even lead to savers receiving lower interest payments on their funds.<\/p>\n

\"\\u200bAnnualAnnual State Pension Amounts by Tax Year | TFP calculators\/CoPilot<\/p>\n

A Treasury spokesman defended the policy, stating: “Parking cash long term in a non-cash Isa to earn tax-free interest isn’t investing. <\/p>\n

“These changes will push more people towards investments that actually grow their money, and industry leaders including Nationwide and the Building Societies Association back us on this.” <\/p>\n

The Government emphasised that savers retain access to \u00a312,000 in cash ISAs, with those aged 65 and over keeping the full \u00a320,000 allowance.<\/p>\n","protected":false},"excerpt":{"rendered":"Pensioners face a 22 per cent tax levy on interest earned from cash holdings within their stocks and…\n","protected":false},"author":2,"featured_media":1050661,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[6],"tags":[51,4951,1232,617,285,619,3028,1200,16,3106,15],"class_list":["post-1050660","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-isa","tag-money","tag-pensions","tag-politics","tag-rachel-reeves","tag-savings","tag-tax","tag-uk","tag-uk-politics","tag-united-kingdom"],"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1050660","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=1050660"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1050660\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/1050661"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=1050660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=1050660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=1050660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}