Savers will no longer be able to take advantage of ISAs to make tax-free income from investment from next year, the Treasury is expected to announce.
Starting next April, income from stocks and shares ISAs will be taxed at 22 per cent, according to The Daily Telegraph.
Why is the government doing this?
As part of a bid to boost domestic investment in the stock market, Rachel Reeves announced in last year’s Budget that the cash ISA limit was being cut from £20,000 a year to £12,000 for under 65s.
Savers were instead encouraged to invest the remaining £8,000 of their tax-free ISA limit in a stocks and shares accounts.
