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Written question asked by Daisy Cooper (Liberal Democrat) on Wednesday, 1 July 2026, in the House of Commons. It was due for an answer on Monday, 6 July 2026. It was answered by Rachel Blake (Labour) on Tuesday, 7 July 2026 on behalf of the Treasury.

Individual Savings Accounts

Question

To ask the Chancellor of the Exchequer, what representations she has received from the investment management industry on changes regarding money market funds in stocks and shares ISAs.

Answer

At Autumn Budget 2025, the Government announced a reduction in the Cash ISA limit for those under 65, to encourage retail investment and drive better returns for savers. Rules are needed to protect the integrity of the Government’s objectives and ensure that the lower cash limit is respected.

HMRC does not currently collect data from ISA managers on investment in money market funds (MMFs) or the purpose for which they are held. MMFs are advertised by the finance industry as low risk alternatives to cash, but they are also used as temporary holding vehicles.

The new rules will not prevent investment in MMFs but ensure MMFs do not constitute the sole investment held in a stocks and shares ISA. Further details of the rules are contained in the HMRC factsheet published at Tax Update 2026 at Tax Update 2026- www.gov.uk/government/publications/fiscal-events-2026-factsheets/isa-reform-2027-anti-circumvention-rules-factsheet

The new rules are the product of extensive engagement with managers of cash and stocks and shares ISAs, alongside trade bodies and savings infrastructure suppliers. The resulting rules are as simple as possible for providers and consumers and retain maximum flexibility for consumers to build an investment portfolio that works for them.

Secondary information

Type
Written question
Reference
14949
Session
2026-27
Grouped for answer
Yes
Subjects
Investment Individual savings accounts
Link
View this Written question on www.parliament.uk