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Labour's ISA Changes Spark Controversy, Deter Investments

12/5/2025

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Summary

Story summary

Labour's changes to ISA rules cut the cash ISA allowance from £20,000 to £12,000 for under-65s, aiming to promote stocks and shares ISAs.
Michael Summersgill, AJ Bell chief executive, described the changes as 'absolutely bonkers' because they add unnecessary complexity.
The reforms will prevent transfers from stocks to cash ISAs starting in April 2027.
Summersgill warned a new charge on interest from stocks and shares ISAs would deter investment.

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Story summary

Labour's changes to ISA rules cut the cash ISA allowance from £20,000 to £12,000 for under-65s, aiming to promote stocks and shares ISAs.
Michael Summersgill, AJ Bell chief executive, described the changes as 'absolutely bonkers' because they add unnecessary complexity.
The reforms will prevent transfers from stocks to cash ISAs starting in April 2027.
Summersgill warned a new charge on interest from stocks and shares ISAs would deter investment.