Why Brits dumped £3.1bn into ISAs during May

Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.Jump to contentThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged inAllNewsSportCultureLifestyleThere’s a 'dash for cash ISAs’ taking place (PA Wire)Savers deposited £3.1 billion into cash ISAs in May, following an even larger £12 billion surge in April, as households anticipate upcoming government changes to tax-free savings. This rush is attributed to Labour's proposed reforms, which will reduce the annual cash ISA allowance for individuals aged 18 to 64 from £20,000 to £12,000, effective from 6 April 2027. Experts suggest this policy, intended to encourage investment in stocks and shares, is currently having the opposite effect by prompting savers to maximise their cash ISA contributions before the allowance is cut. Sarah Coles from AJ Bell noted that this 'dash for cash ISAs' demonstrates the 'unintended consequences' of the planned reforms, as people fill their allowances while they still can. Further changes include a new 22 per cent tax on interest earned from uninvested cash within Stocks and Shares ISAs, set to be introduced from next April. In fullSavers pour £3.1bn into cash ISAs ahead of Labour’s planned allowance cutMore bulletinsThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in

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