Stocks and shares ISAs are no longer tax free

[JoyousOpalLemur]

Any profit you make on a stocks and shares ISA will now be taxed at 22%.

I thought the whole point of an ISA was that it was tax free saving?

I also thought the cash ISA limit was being reduced so that we would invest in stocks and shares ISAs instead.

What is the point of them now?

Why is gambling tax free but saving is taxed?

Why wasn't this announced in a Budget?

https://www.thetimes.com/money/tax/article/savers-who-try-to-swerve-cash-isa-changes-face-tax-charge-bx96zd9cd

It's only on uninvested money sitting there making interest. Not s&s profits

It is to stop people holding cash in a S&S ISA to get around the reduction in cash ISA amounts. Investments are fine. S&S ISA is for S&Ss not cash.

As already stated by another poster it's effectively an anto evasion thing to stop S&S ISAs being used to evade the new restrictions on the Cash variety.

You'll only be taxed on the interest paid on any cash kept in a S&S ISA. Which isn't what they are designed for.

That is very much not the same as being taxed on your profits.

"Any profit you make on a stocks and shares ISA will now be taxed at 22%."

this is wrong. It only covers interest earned on any uninvested cash sitting inside a Stocks and Shares ISA.

Oh, ok, thanks, it's not that big a deal then.

I do think reducing the Cash ISA limits is a mistake though, which is probably why people are doing this.

Thank god for the replies, I was a bit panicked I’d missed a massive change

You'll still be able to put £12k cash pa in though. And most people have the personal savings allowance. Is that not enough?

It's been £20k for several years. During that time we've had rampant inflation.

Some people save more than £20k per year for things like a house purchase.

Bottom line is you save tax on a relatively small amount of interest.

For those over 65, nothing has changed. It just drags the interest out of reach of the taxman. 👍