Investment - Articles - Treasury to levy 22% interest on cash in Stocks & Shares ISA

Rob Hillock, Head of Personal Financial Planning at Broadstone, commented: “The Government is clearly fully committed to ensuring more of savers’ money is invested in the UK stock market. By making cash holdings within stocks and shares ISAs less attractive and restricting movement back into cash ISAs, policymakers are creating a stronger incentive for individuals to actively manage their money and keep it invested for longer.

 

“For many savers, particularly younger investors with wider time horizons, the hope is that this will significantly improve long-term returns. However, there is a risk that some individuals become uncomfortable holding investment risk if they feel their ability to move back into cash has been reduced.

 

“The key challenge will be ensuring savers understand both the opportunities and risks involved, so that investment decisions are driven by personal circumstances and financial goals rather than tax considerations alone.”

 

Source: https://www.ft.com/content/f13b5bba-1f79-45e3-a6c8-5c8182ca6c2e?syn-25a6b1a6=1