The overall annual ISA allowance of £20,000 remains unchanged. However, from 6 April 2027, the amount that a UK individual under the age of 65 can contribute to a Cash ISA each year will reduce from £20,000 to £12,000. The table below shows the full picture across all ISA types:

The age threshold of 65 is set by the government as part of this policy — it is not an IG rule. The full £20,000 Cash ISA entitlement for UK individuals aged 65 or over applies from the start of the tax year in which you turn 65 — not from your birthday. For example, if you turn 65 in November 2027, your entitlement to the full £20,000 Cash ISA allowance begins from 6 April 2027, the start of that tax year.

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From 6 April 2027, a flat-rate 22% charge will apply to any interest earned on uninvested cash held within your IG Stocks & Shares ISA. Note: this charge also applies industry-wide to Innovative Finance ISAs and alternative finance returns, though IG does not currently offer either of these products.

IG, as your ISA manager, will collect the 22% charge and pay it directly to HMRC on your behalf. You do not need to declare it to HMRC yourself.
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IG currently pays 3.75% AER variable interest on uninvested cash in GBP held across your linked accounts, including your Stocks & Shares ISA and Junior ISA. Interest is paid to clients who are active during the month. Interest applies to uninvested cash up to £100,000 in total across all linked accounts — clients with balances above this threshold will have interest allocated on a pro-rata basis.
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IG will continue to pay this interest after April 2027. It is expected that this interest will be paid net of the 22% charge — meaning IG will pay the charge directly to HMRC on your behalf. Any future changes will be communicated to clients.

The 22% charge applies to interest on uninvested cash regardless of how long that cash has been held. Cash sitting in your account for only a few days — for example, between selling a holding and reinvesting — is treated the same way as any other uninvested cash. The cash itself is never taxed; only the interest it earns is subject to the charge.

From 6 April 2027, transfers from a Stocks & Shares ISA or an Innovative Finance ISA to a Cash ISA are not permitted for UK individuals under the age of 65. This age threshold is set by the government as part of this policy — it is not an IG rule.

No. The new rules do not affect investment returns. Your shares, ETFs, funds, investment trusts, bonds, and gilts remain fully tax-free — both for capital growth and income. The 22% charge only applies if your IG Stocks & Shares ISA holds uninvested cash that earns interest. If you put money in and invest it promptly, the impact will be minimal.
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If your cash sits in your IG Stocks & Shares ISA earning interest from April 2027, the 22% charge will apply to that interest. The cash itself is not taxed — only the interest it generates.

For example: £5,000 in uninvested cash earning 3% per year would generate £150 in annual interest. Under the new rules, a 22% charge of £33 would apply, reducing the net interest to £117.

IG will continue to pay interest on uninvested cash held in your Stocks & Shares ISA after April 2027, subject to the existing conditions — interest applies to GBP balances only, to clients who are active during the month, and to uninvested cash up to £100,000 in total across all linked accounts.
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It is expected that this interest will be paid net of the 22% charge — meaning IG will pay the charge directly to HMRC on your behalf, and you will see the net amount credited to your account without needing to take any action yourself. Any future changes will be communicated to clients.
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Cash sitting in your IG Stocks & Shares ISA following a sale is uninvested cash. The cash itself is never taxed — only the interest it earns. If that cash earns interest, the 22% charge applies to that interest from April 2027, regardless of how long the cash has been held in your account.

There is no separate treatment for short-term balances. The same rule applies whether your cash has been sitting in the account for a few days or for much longer — the 22% charge is applied to interest earned on any cash held within a non-cash ISA, irrespective of the holding period.

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For most IG clients, your IG Stocks & Shares ISA remains fully tax-free. The 22% charge is narrow — it applies only to interest earned on uninvested cash held within your IG Stocks & Shares ISA or Innovative Finance ISA. Investment gains, dividends, and returns from shares, funds, ETFs, bonds, and gilts are completely unaffected. The ISA tax wrapper continues to work exactly as it always has for investment activity.
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Yes. The 22% charge is a flat rate that applies regardless of age, income tax bracket, or whether you pay any tax at all. It applies equally to basic-rate taxpayers, higher-rate taxpayers, and non-taxpayers. IG, as your ISA manager, collects the charge and pays it directly to HMRC. You do not need to declare it yourself.
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No. The Personal Savings Allowance allows most people to earn savings interest outside an ISA without paying tax — £1,000 for basic-rate taxpayers, £500 for higher-rate, and £0 for additional-rate taxpayers. However, the Personal Savings Allowance has never applied to income earned inside an ISA, and it does not offset the new 22% charge. The charge is entirely separate.
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Cash means any uninvested money held in your IG Stocks & Shares ISA. This includes money deposited but not yet invested, proceeds from selling a holding that are sitting in your account awaiting reinvestment, and dividends or other income received into your account but not yet reinvested.

Money Market Funds are treated separately as 'cash-like' assets — they are not classed as cash for the 22% charge, provided they do not make up 100% of your ISA.
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Your existing Cash ISA balance is fully protected. The new rules do not affect money already held in a Cash ISA.

From 6 April 2027, the amount you can contribute to a Cash ISA each year reduces to £12,000 for UK individuals under the age of 65. This applies to new contributions only. Transfers from a Cash ISA into a Stocks & Shares ISA continue to be allowed. Transfers in the other direction — from a Stocks & Shares ISA into a Cash ISA — will no longer be permitted for UK individuals under the age of 65 from that date.

​IG does not offer a Cash ISA.
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The overall annual ISA allowance remains £20,000. What changes is how much of that can go into a Cash ISA:

IG only offers Stocks & Shares ISAs. Your IG ISA allowance is unchanged at £20,000.
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No. Money you already hold in your ISA retains its full tax-free status. The new rules apply to interest earned on cash from 6 April 2027 onwards — not to your existing savings.
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From 6 April 2027, transfers from a Stocks & Shares ISA or Innovative Finance ISA to a Cash ISA are not permitted for UK individuals under the age of 65. This age threshold is set by the government as part of this policy — it is not an IG rule.

If you want to move your IG ISA to a Cash ISA at another provider, this must be arranged before 6 April 2027. Transfers from a Cash ISA to a Stocks & Shares ISA continue to be permitted after April 2027.

The transfer restriction lifts from the start of the tax year in which you turn 65 — not on your birthday. For example, if you turn 65 in August 2027, your entitlement to transfer applies from 6 April 2027, the start of that tax year.

IG does not offer a Cash ISA. For personal transfer advice, we recommend speaking with an independent financial adviser.
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Yes. Transfers from a Cash ISA into a Stocks & Shares ISA continue to be permitted before and after April 2027. To arrange a transfer in, please visit our Help & Support article: How do I transfer my shares or ISAs from another broker to IG?
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Yes. You can transfer your IG Stocks & Shares ISA to another provider at any time. If you wish to transfer to a Cash ISA at another provider, this must be completed before 6 April 2027. To arrange a transfer out, please visit our Help & Support article: How do I transfer my shares or ISAs from IG to another broker?
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Only if Money Market Funds make up 100% of your ISA. If you also hold any other qualifying investment — even a small amount in shares, a fund, an ETF, or a bond — you are unaffected.

From April 2027, a portfolio made up entirely of Money Market Funds will be a non-qualifying position. Adding any other qualifying investment resolves this.
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No. Cash-like assets are defined as Money Market Funds only. Individual shares, investment trusts, ETFs, funds, corporate bonds, government bonds, UK gilts, and short-dated gilts are explicitly not classified as cash-like and are completely unaffected.
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Yes. IG's Stocks & Shares ISA is a flexible ISA — you can withdraw money you have contributed in the current tax year and reinvest it later in the same tax year without it counting against your annual allowance. This flexibility is unaffected by the April 2027 changes.
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No. IG offers Stocks & Shares ISAs — adult and Junior. We do not offer a Cash ISA.

Yes. IG offers a Stocks & Shares Junior ISA for children under 18. The annual allowance of £9,000 per child is unchanged by the April 2027 reforms. IG does not offer a Cash Junior ISA. IG currently accepts Junior ISA applications for children under 14.

The Junior ISA is not affected by the April 2027 changes. Both cash and non-cash Junior ISA options maintain the same £9,000 subscription limit, and Junior ISAs are out of scope for the new rules — including the 22% charge.
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No. IG's Bed & ISA service is a different type of transfer and is not affected by the April 2027 rules.

The April 2027 transfer ban applies to ISA-to-ISA transfers — specifically, transfers from a Stocks & Shares ISA or Innovative Finance ISA into a Cash ISA for UK individuals under the age of 65. Bed & ISA is an entirely different process. It involves selling shares held in a General Investment Account, which is not an ISA, and immediately repurchasing them inside your Stocks & Shares ISA. This moves investments from a non-ISA account into an ISA — not between ISA types. The new rules do not apply to this kind of transfer.

If you use Bed & ISA to move investments from your GIA into your IG ISA, this process continues to work exactly as it does today and is unaffected by the April 2027 changes. For more information on the Bed & ISA service, including fees and how to request a transfer, please visit our Help & Support article: How do I transfer shares from my IG share dealing account to my IG ISA?
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The government has launched a consultation on a new First-Time Buyer ISA to replace the Lifetime ISA. The consultation runs until 17 August 2026.

Key proposed features include:

The bonus rate, property price cap, and contribution limits have not yet been confirmed and will be announced at a future fiscal event.

IG does not currently offer a Lifetime ISA or a First-Time Buyer ISA. We are not able to comment on future product plans.
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The official source is the HMRC ISA Reform 2027: Anti-Circumvention Rules Factsheet, published 23 June 2026. You can access it directly here: HMRC — ISA Reform 2027: Anti-Circumvention Rules Factsheet

For questions about how the changes affect your personal circumstances, we recommend seeking advice from an independent financial adviser.
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