Hold onto your hats, rumours swirling that Rachel Reeves is looking into ANOTHER tax and if you have savings .. she might be coming for you.

[EvangelicalAboutButteredToast]

Yep, it’s another Labour tax! I know everyone felt very positive about the last one I posted: proposed tourist tax to make your staycations potentially more expensive on top of her also targeting holidays abroad by increasing air passenger duty plans to charge 20 per cent VAT on the fees airports charge airlines for using runways and terminals which will of course be passed onto customers.

Now for the savers.

Rumours are circulating that Chancellor of the Exchequer Rachel Reeves is planning to impose a new 22% charge on interest earned from cash held in a Stocks and Shares ISA from April 2027.
While nothing has been confirmed yet, here’s what could change and what it could mean for you.
What is the proposed 22% charge on cash in a Stocks and Shares ISA?
Currently, any cash you hold inside a Stocks and Shares ISA, whether that’s uninvested money sitting on the side or interest earned from cash-like products, is completely tax-free.
But now that could be about to change.
Reeves is reportedly planning to impose a 22% tax charge on any interest earned from cash held inside a Stocks and Shares ISA, starting from April 2027.
Following the Cash ISA allowance cut from April 2027, announced in the 2025 Autumn Budget, the government wants to stop savvy savers from parking their cash inside a Stocks and Shares ISA to dodge the new Cash ISA limits (more on those below).
However, this isn’t entirely new ground.
Before 2014, a 20% charge applied to cash interest inside Stocks and Shares ISAs. The new proposal would bring that back — only this time at 22%, in line with the incoming savings interest tax rate change from April 2027.
Why is Rachel Reeves changing the ISA rules?
The government thinks the UK general public saves too much and invests too little.
Compared to other G7 nations, British households have historically kept a much larger portion of their money in cash savings rather than putting it to work in the stock market.
Reeves wants to change that and turn us into a nation of investors, rather than savers.
And she’s hoping that with more retail investors, it will mean more money flowing into UK businesses, driving growth and boosting tax receipts.

https://blog.investengine.com/rachel-reeves-tax-cash-in-stocks-and-shares-isa/

Was also being discussed on LBC This morning. Everyone still happy?

And that’s your choice but it still makes you incredibly out of touch

Lovely.

She’d get fuck all tax out of my premium bonds. I’d happily take that ten pence coin and deliver it into her hand.

I understand it’s a long term thing but still has risk attached.

I have quite a few young people who work for me who are dual nationals and use the ISAs instead of pensions. I think because they plan to go back to their home country mainly and I guess it may be complicated with a UK pension and they are young and want flexibility. They will potentially just see this as a further unreasonable tax on their demographic. You can’t trap people and you can’t force people to work here.

You have certainly earned a place in heaven with all the virtue signalling you sprayed us with in that post. We had privilege AND tone deaf. Wowsers.

Out of touch, how? If you’re implying that I should be paying more tax because the country is screwed, then my answer is that I contribute what I do. It’s cuts to spending us what she should be doing.

Yes, of course. Most things do. Your savings are at risk if you have more than £85K with one provider for example. They're at risk if you stash them under the mattress. But if you want them to grow, you need to be prepared to take a risk. If you are risk averse you can choose a low-risk, low-return investment. But you need to speculate to accumulate!

WFT does virtue signalling even mean? If you can’t see how gross it is to be complaining about a small reduction in a tax break when you put more into savings in a year than the average British person has in total then you’re completely beyond hope. Carry on doing “old man yells at cloud”if you want though. Just don’t expect anyone else to feel sorry for you.

This isn’t about tax revenue - it’s about behavioural change.

It's not virtue signalling though. It's reality. It's a tiny potential extra tax on a tiny amount of money for a tiny number of people, who will not miss the money one bit. If you can't get your head around that, that's on you I'm afraid.

Your savings are not at risk.

It's never going to happen.

FFS- and the super rich?

I obviously wish I had understood about compound interest ten years ago but I don’t have a Time Machine.

But it’s not a potential tiny bit of tax on a tiny bit of money on a tiny amount of people. It’s a scatter gun of stealth tax raids on a whole heap of people and it goes on and on and on. Just because you have chosen to deem yourself as privileged, that’s on you. I most definitely am not rich, nor am I privileged. Set up a direct debit straight to the treasury to take 25% of your income every month and then you can rid yourself of your burden of guilt.

The super rich left a while ago. That’s why they deemed everyone left, who earns over 45k a year, wealthy.

Good. It is a very unfair tax and needs reviewing

No one’s council tax will be going down so don’t go getting excited.

https://www.msn.com/en-gb/news/insight/burnham-backs-land-and-council-tax-overhaul-despite-backlash/gm-GM1DEFA7DD?gemSnapshotKey=GM1DEFA7DD-snapshot-6&ocid=U482DHP

I think they’d have to make it regional like they do in other countries or it’s really going to hammer low income families in the south east who are struggling with high house prices/rent as it is

We live on a postage stamp’s worth of land so whilst that wouldn’t impact me I suspect that would be incredibly unpopular.

They won’t give a shit about that.

I know how this ends. My London garden where you are lucky to swing a cat will be taxed by land tax ten times more then so and so’s country estate in Grimbsy. Because apparently I should be putting a skyscraper on my plot. Just like I won’t be able to hire any trainees because nobody in their right mind wants to work 14 hours 6 days a week to be taxed 65% or whatever they have up their sleeve.

Well of course not. But as Labour have a lot of seats in London it would be wise to consider it

burnham seems to be pitching to the north as he’s desperate to win the seat

Although the fastest growing house price areas are all in the north and the friction is really hitting the market in the south