The New ISA Rules from 2026

Alexland · 3 December 2025 at 9:59PM

Eyeful said:

Who knows some of the things you are worrying about may not happen or may be watered down!

I really hope the changes don't happen.

If people are disallowed from holding money market funds, short term bonds, etc. then it stops them running their own derisking strategies using the building block component funds as they get closer to needing to use the S&S ISA money or running their own tactical asset allocation strategies to manage risk across the cycle when some assets are looking expensive compared to historic norms.

S&S ISAs are not supposed to be a retirement vehicle aiming for over 65 they are supposed to be for any point in adult life.

There are life events that S&S ISA holders go through (such as divorce, getting married, buying a bigger house, etc) where the S&S ISA holders may have good reason to transfer to cash or cash-like investments. They are not trying to bypass the pointless Cash ISA limit just manage their money in a sensible way and ensure their assets are at a suitable risk level for their circumstances.

Similarly there may be people who have good reason to put more than £12k pa in a Cash ISA for example if they are saving for a house maybe they have received a gift or small inheritance but still don't have suitable timescales before needing to spend the money to make a long term S&S investment.

So if this is supposed to be a crude nudge to get people investing it's more like a nudge to stop people making sensible choices on how to allocate their capital in accordance to their risk appetite, evolving needs and likely withdrawal timescales.

Catplan · 3 December 2025 at 10:56PM

Need to see the details in full, however, I can see me for example taking 20k out my stocks and share ISA, sticking it into pension, as while I’m working it becomes 25K straight away with the benefit of more tailored (some might say suitable) investment choices it seems…..