# Risk of complicated rules around proposed ISA taxation and 1p ‘loophole’

By Katie Horne — 2026-05-27

Katie Horne, savings expert at Flagstone, said: “The Chancellor’s decision to cut the Cash ISA allowance was a blow to the hundreds of thousands of people who, every year, do their level best to save money, often putting it away for the long-term to fund their post-retirement lives.

“The possibility of the Chancellor adding a 22% levy to any ‘cash-like’ investments in a saver’s Stocks & Shares ISAs would be a further blow. Not only will the tax curtail the freedom savers have to make savings and investments that suit their personal, individual needs, but it also risks confusing and complicating a system that was created to simplify taking control of personal finances and developing good savings habits.”

Q1 2026 research by Flagstone & Opinium found that:
– 67% of Cash ISA holders prefer Cash ISAs over all other savings options
– 66% of Cash ISA savers choose them over Stocks & Shares ISAs because they don’t want to put their money at risk
– 77% praise Cash ISAs for encouraging anyone to develop good savings habits.

Canonical: https://experts.pressassociation.com/expert/160/views/9f058d3634209278