HM Revenue and Customs Collected £800,000 in ISA Fines

## HM Revenue and Customs collected £800,000 in fines from Individual Savings Account (ISA) savers during the 2024-25 tax year, according to Freedom of Information data. Including taxes, the agency earned a total of £1.3 million, issuing penalties to 326 account holders at an average of £9,448.32 per person.

Common errors leading to these fines included withdrawing funds from Junior ISAs before the child turned 18 and failing to use official transfer processes when switching providers. The agency stated that it works with ISA providers to correct errors when breaches are identified and that savers have the right to appeal incorrectly charged penalties.

These findings coincide with upcoming cash ISA changes scheduled for next April. Former Chancellor Rachel Reeves reduced the annual allowance from £20,000 to £12,000. Financial experts have criticized these reforms, arguing that the reduced flexibility and increased complexity may deter retail investing and encourage consumers to return to cash.