Individual Savings Account (Amendment) Regulation 2026
Published 9 March 2026
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Who is likely to be affected
Savers with Individual Savings Accounts (ISA) and Junior Individual Savings Accounts (ISAs).
Financial institutions who provide or manage these accounts or investments.
General description of the measure
This measure will allow Long Term Asset Funds (LTAF) to be held in a stocks and shares ISA and Junior ISA and remove their eligibility for the Innovative Finance Individual Savings Account (IFISA). LTAFs which were held in an IFISA prior to 6 April 2026 will be treated as qualifying for a stocks and shares ISA.
The measure will also restrict cryptoasset exchange traded notes (cETNs) to the IFISA. cETNs which were held in a stocks and shares ISA or Junior ISA, prior to 6 April 2026 can be retained within the accounts.
Policy objective
The measure supports savers and allows investors at all income levels to save and invest in ways which best meet their needs.
Including LTAFs as qualifying investments for the stocks and shares ISA, addresses providers’ concerns and makes sure that individuals and families have access to suitable products that meet their needs.
Restricting cETNs to IFISAs reflects the government’s commitment to making sure that UK savers can access a diverse range of assets in ISAs, while recognising the evolving nature of digital finance. The measure makes sure that qualifying investments for a Junior ISA are appropriate for the account.
Allowing cETNs which were within accounts prior to 6 April 2026 to remain in them provides certainty to investors and ISA managers.
Background to the measure
At Mansion House 2025, the government announced that from 6 April 2026 LTAFs would be qualifying investments for stocks and shares ISAs. On 8 October 2025 it was announced that, with effect from 6 April 2026, cETNs would be restricted to IFISAs.
Detailed proposal
Operative date
The measure will have effect from 6 April 2026.
Current law
The ISA rules are set out in the Individual Savings Account Regulations 1998 (SI 1998/1870) (ISA Regulations), which are made under powers in Chapter 3 of Part 6 of the Income Tax (Trading and Other Income) Act 2005 and section 151 of the Taxation of Chargeable Gains Act 1992.
The ISA Regulations specify the types of investments eligible to be held in an ISA or Junior ISA and provide time limits within which ISA managers must act on instructions from their customers. One such rule is that only authorised or recognised funds may be held in a stocks and shares ISA. cETNs are not currently defined separately from other qualifying securities. LTAFs are currently qualifying investments for the IFISA and are not subject to the time limits given their limited liquidity.
Proposed revisions
The ISA Regulations will be amended to provide that LTAFs are qualifying investments for the stocks and shares ISA and Junior ISA and will remove their eligibility for an IFISA.
LTAFs which were held within an IFISA prior to 6 April 2026 are to be treated as qualifying investments for a stocks and shares ISA. The ISA Regulations will also be amended to require ISA managers to report LTAFs separately.
The Regulations will be amended to define cETNs for the purposes of the ISA Regulations. The amendments will provide that cETNs are qualifying investment for an IFISA and remove their eligibility for stocks and shares ISAs and Junior ISAs. cETNs which were held in a stocks and shares ISA or Junior ISA prior to 6 April 2026 can remain within the account. The ISA Regulations will also be amended to require ISA managers to report cETNs separately.
Summary of impacts
Exchequer impact (£million)
| 2025 to 2026 | 2026 to 2027 | 2027 to 2028 | 2028 to 2029 | 2029 to 2030 | 2030 to 2031 |
|---|---|---|---|---|---|
| — | negligible | negligible | negligible | negligible | negligible |
This measure is expected to have a negligible impact on the Exchequer
Macroeconomic impact
This measure is not expected to have any significant macroeconomic impacts.
Impact on individuals, households and families
The measure will allow:
- individuals who wish to invest in LTAFs to do so in a stocks and shares ISA or Junior ISA
- individuals who wish to invest in cETNs to do so in a way which extends investor choice but manages risk responsibly by recognising the evolving nature of digital finance and the market
- cETNs which were held in a Junior ISA prior to 6 April 2026 to remain within the account
It will therefore not be necessary to liquidate such investments and reinvest the released monies.
These measures are not expected to impact on family formation, stability or breakdown.
This measure is not expected to affect individuals’ experience of dealing with HMRC as this does not change any processes or tax administration obligations.
Equalities impacts
An individual may be impacted by this measure regardless of their protected characteristics. If a protected group is overrepresented in this population, then it will be disproportionately impacted. HMRC does not currently hold data on the protected characteristics of individuals impacted by this measure and so cannot determine conclusively if there are any equality impacts.
Impact on business including civil society organisations
The measure will have a negligible impact on those ISA managers who, depending on their business model and regulatory permissions, choose to offer LTAFs or cETNs in their ISA products. Allowing cETNs to be included in IFISAs opens up new investment opportunities, supporting innovation and diversification. Transitional arrangements address any impacts on those who have included cETNs in stocks and shares ISAs ahead of new rules coming into force on 6 April 2026. ISA managers who do not currently have HMRC’s approval to offer a stocks and shares ISA or IFISA will need to seek approval.
One-off costs for those ISA managers will include familiarisation with the changes to make sure they are compliant and changes to supporting business processes such as reporting requirements.
This measure is not expected to negatively affect businesses’ experience of dealing with HMRC as this does not change any processes or tax administration obligations.
These measures are not expected to impact on civil society organisations.
Operational impact (£million) (HMRC or other)
The overall additional costs for HMRC in implementing these changes are expected to be negligible. These are restricted to updating the ISA Manager Guidance and confirming the changes with the ISA industry.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
Consideration will be given to monitoring this measure through information collected from ISA manager returns and kept under review through communication with affected taxpayers and the financial services industry.
Further advice
If you have any questions about this change, contact Helen Williams on 03000 200 3300 or email: savings.audit@hmrc.gov.uk.
Declaration
Lucy Rigby MP, Economic Secretary at His Majesty’s Treasury has read this tax information and impact note and is satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impacts of the measure.