Summary
Chancellor Rachel Reeves may change the rules for tax-free Individual Savings Accounts (ISAs). We will likely know more about her plans during her upcoming Mansion House speech. ISAs let people save money without paying tax on the returns, up to a yearly limit.
Key Facts
- ISAs are savings or investment accounts that allow tax-free returns.
- The current limit for annual savings in an ISA is £20,000.
- You can have different types of ISAs, like cash ISAs or stocks and shares ISAs.
- Cash ISAs work like regular savings accounts but without taxes on interest.
- Stocks and shares ISAs involve investing money in stocks or bonds, with tax-free earnings.
- Junior ISAs and Lifetime ISAs are special types for young people and specific goals, like buying a house.
- Chancellor Reeves has not yet detailed her plans, but changes may be announced soon.
- The government is exploring changes to balance cash savings and investment returns.
