CEO Criticizes ISA Rule Changes

AJ Bell CEO Criticizes ISA Rule Changes, Urges Government to Stabilize Pension Withdrawal RulesIn a recent podcast episode, AJ Bells CEO, Michael Summersgill, expressed strong disapproval of the latest ISA rule changes, labeling them as absolutely bonkers. He highlighted the new age-specific restrictions on cash ISAs, which he believes will increase market complexity and deter people from investing.The government reduced the annual tax-free savings limit from £20,000 to £12,000 for individuals under 65, aiming to promote stocks ISA investments. From April 2027, those under 65 will no longer be able to transfer funds from stocks and shares ISAs to cash ISAs.To prevent cash ISA misuse, HMRC will impose a charge on uninvested funds interest, which Summersgill views as an unprecedented tax, hindering new investors. Despite AJ Bells record revenue and profit growth, Summersgill urged the government to clarify tax-free cash pension withdrawal rules to reduce future uncertainty for investors.These developments reflect growing concerns among financial experts about the impact of new regulations on individual savings and investment behavior, potentially creating more barriers rather than simplifying the process for the average person.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.