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’ Isa reforms announced on Tuesday promise a new first-time buyer account with no upper age limit, and a tax on interest on cash savings held in a stocks and shares wrapper. Savers and investors can currently deposit up to £20,000 a year in Isas, which offer the chance to earn returns which are not subject to tax. In last year’s budget, the chancellor, Rachel Reeves, announced major changes to the regime, including the end of the Lifetime Isa, aimed at people saving for a first home or retirement, and a lower cap on cash Isa savings for everyone aged under 65. More details of the changes were announced on Tuesday, as the government launched a consultation on a new first-time buyer Isa and published rules to prevent savers using stocks and shares Isas to hoard cash. The consultation from the Treasury suggests that the first-time buyer Isa will be available to anyone aged over 18, in contrast to the lifetime Isa (Lisa), which had an upper age limit of 40 for new savers. The Treasury said this recognised “that the age at which a first home is bought is rising