How ISA tax rules are changing from April 2027

In a big shake-up to ISAs, it was recently announced that a new flat-rate charge of 22% will be applied on interest paid on cash within a stocks and shares ISA from the start of the next tax year on 6 April 2027.The change will be implemented at the same time as other previously flagged changes, including a lower cash ISA allowance of £12,000 for those under the age of 65, and a ban on transferring a stocks and shares ISA to a cash ISA. To unpick all the details, including what the rules say about money market funds, and to run through the implications for investors, Kyle is joined by Craig Rickman, personal finance editor at interactive investor.Kyle Caldwell is Funds and Investment Education Editor at interactive investor.On The Money is an interactive investor (ii) podcast. For more investment news and ideas, visit www.ii.co.uk/stock-market-news.Important information:This podcast is intended for information purposes only and is not a personal recommendation. Past performance is not a guide to future performance. The value of your investments may go down as well as up, and you may not get back all the money that you invest. Full performance information can be found on the company or index summary page on the interactive investor website.The ii Personal Pension (SIPP) is for people who want to make their own decisions when investing for retirement. Usually, you won’t be able to withdraw your money until age 55 (57 from 2028). If you are in any doubt about the suitability of the ii Personal Pension (SIPP), Stocks & Shares ISA, Trading Account, and/or any related tax treatment of these products, you should seek independent financial advice.Interactive Investor Services Limited is authorised and regulated by the Financial Conduct Authority.