Cash held in stocks & shares ISAs will be taxed at 22% regardless of tax band and will be deducted by ISA providers, not paid by individuals, but there are still questions about how this will work in practice and timeframes for reporting to HMRC.

Due to the shake-up of ISAs and changes to thresholds, savers are warned uninvested cash held in stocks and shares ISAs and innovative finance ISAs [used for crowdfunding and peer to peer investments] will be taxed at the savings basic rate of 22% across the board, and there will not be a premium for higher or additional rate taxpayers.