JustPete

[Ashy @AshyCompounds]

Half of X is losing its mind over the new ISA rule.

Let me explain what's actually happening, because the outrage is mostly people misunderstanding their own ISA.

From April 2027, a 22% charge applies to interest earned on CASH sitting inside a Stocks & Shares ISA.

Not on your investments. Not on dividends. Not on capital gains. Just on cash you're leaving idle in an account designed for investing.

Here's the bit nobody's saying out loud:

if you're using a S&S ISA to just hold cash, you're using the wrong wrapper.

Want to save? Use a Cash ISA. Tax-free interest, zero risk, simple.

Want to invest? Use a Stocks & Shares ISA. That's literally what it's built for.

The reason this rule exists is because they assume people will quietly parking cash inside S&S ISAs to dodge the lower cash ISA allowance, rather than actually investing it. The government is closing that loophole before it even exists.

Now let's talk about why investing in the first place matters so much more than people parking cash realise.

£10,000 in a Cash ISA at 4% for 20 years: £21,911.

£10,000 in a S&S ISA invested in a global index fund averaging 8%: £46,610.

Same tax-free. More than double the outcome.

That gap is the entire reason this policy exists, to nudge people out of cash and into growth.

And here's what actually annoys me about the outrage.

You CAN still hold cash-like exposure in a S&S ISA, completely unaffected by this charge.
Money Market Funds are explicitly exempt from the 22% charge entirely, as long as your account isn't 100% cash-like assets.

So if you want stability inside your S&S ISA, you've got real options:

Money Market Funds: short-term, low-risk, currently yielding close to the base rate, fully exempt from the new charge.

Short-dated gilts: UK government debt, extremely low risk, still counts as a genuine investment.

Gilt or bond ETFs: diversified, low volatility, still doing what an ISA is meant to do.

None of these get touched by the new rule.

The only thing being taxed is literal idle cash sitting doing nothing.

This is a nudge to actually invest - and fix our high-saving, low investing culture.

Stop overreacting to a headline you haven't read the detail on.
Are you holding cash in your S&S ISA right now? What for?
What have I got wrong ?👇

#ISA #InvestingUK #PersonalFinance

[JustPete @ceath12]

@PeachJars Happy Birthday 🎂🎉

[JustPete @ceath12]

@arkittyy @AEWonTV

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@ferox_and_tame

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@TheSadiegibbs

[DansGaming @Dansgaming]

A fire broke out in my Paralives house and chaos followed.

[JustPete @ceath12]

@reedefox

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@klivviaa

[Arsenal @Arsenal]

We did it, together.

[Drainmaker @TheDrainmaker]

ATHENA CHOKESLAMMED ON A STACK OF CHAIRS!!!

OH MY FUCKING GOD.

[JustPete @ceath12]

@ferox_and_tame Happy birthday 🎂🎈

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@klivviaa

[Jade Chung @JadeChung11]

Don’t call it a comeback…

[JustPete @ceath12]

@Visual_Salman This is my phone lock screen now, very very nice 👍👍💪💪

[JustPete @ceath12]

@LuvEvelynClaire Happy birthday 🎉

[NASA @NASA]

Welcome home Reid, Victor, Christina, and Jeremy! 🫶

The Artemis II astronauts have splashed down at 8:07pm ET (0007 UTC April 11), bringing their historic 10-day mission around the Moon to an end.

[JustPete @ceath12]

@reedefox

[Stephanie Vaquer @Steph_Vaquer]

@YaOnlyLivvOnce

[Jay The Amazing @Jaytheamazing_]

I cannot get over this booster sep footage from Artemis II

[Salman @Visual_Salman]

I made this animation in Blender