Dame Meg Hillier, Labour chairman of the Treasury select committee, has warned that Rachel Reeves’s flagship reforms could destroy Britain’s most successful investment product, the Isa. She said the new rules, including a 22pc tax on formerly tax-free cash interest, a ban on transfers from non-cash Isas to cash Isas, and a 40pc cut in the annual cash Isa allowance for under-65s, risk causing serious confusion and are weakening the Isa brand. Tom Selby of AJ Bell called the reforms a dog’s breakfast, arguing they layer on unnecessary complexity. The Telegraph previously revealed a loophole allowing savers to circumvent the new cash Isa limit by using cash-like investments such as money market funds. Andrew Prosser of InvestEngine suggested the directives could be watered down before taking effect under a potential new chancellor.
AJ Bell plcAJ Bell's Tom Selby criticizes the reforms as a 'dog's breakfast', implying negative impact on their business due to increased complexity and potential reduction in Isa usage.