Rejected petition: Defend the ISA Promise: Stop the 22% Tax on Cash in Stocks & Shares ISAs
Rejected on
The Government should not introduce the proposed 22% tax on interest earned from cash held within Stocks & Shares ISAs. Cash balances are often held temporarily while saving to invest. Cash-equivalent investments carry risk and lack bank deposit protection. Taxing them would discourage investment
Cash in Stocks & Shares ISAs is a temporary reserve for buying shares, not a Cash ISA alternative. Taxing this interest reduces investment and disproportionately hurts middle-and-lower-class savers building wealth. To earn interest here, cash is often held in Qualifying Money Market Funds (QMMFs). These are risky investments without bank deposit protections, meaning savers could lose money while still facing tax liabilities. This policy unfairly penalizes everyday savers and investors.
Why was this petition rejected?
There’s already a petition about this issue. We cannot accept a new petition when we already have one about a very similar issue.
You are more likely to get action on this issue if you sign and share a single petition.
We already have a petition open on this subject which you may wish to sign:
Do Not Tax Uninvested Cash Held Within Stocks and Shares ISAs
https://petition.parliament.uk/petitions/774871We only reject petitions that don’t meet the petition standards.