So we have had the official, pretty clear confirmation, they are going to be taxing cash inside of stocks-and-shares ISAs from next tax year.

So we have had the official, pretty clear confirmation, they are going to be taxing cash inside of stocks-and-shares ISAs from next tax year. I don't know why I'm smiling, it's not good news. Before I explain exactly what's happening, because it's not as bad as people think, but you do not try and get more people in this country to start investing by penalizing the one thing that we have that's pretty decent, the stocks and shares ISA. What you're actually going to do is confuse more people and make more people less inclined to start doing the one thing they should be doing with their money. Let me briefly add some context because I know a lot of people will be confused about this. They are essentially trying to shut a loophole that because of the Cash ISA drop down to 12,000 pounds next year, some people could just invest their money inside of a stocks and shares ISA, keep it like cash, get paid interest, and essentially they've built a Cash ISA inside of a Stocks and Shares ISA. So to try and stop this from happening, they're going to be charging 22% tax on any cash that you hold inside of a stocks and shares ISA. So if we're talking practically, let's say you put 20,000 pounds into a Stocks and Shares ISA, hold it all inside of cash, get paid 4% interest, that's about 180 pounds of tax on the 800 pounds of interest that you would have earned. Now there are actually some loopholes to this, yep, they have loopholes to the loopholes. But let's say you have part of your money invested, you can actually hold part of your money invested in cash-like investments, something like a money market fund, which is for example on Trading 212, when you have cash on there, they hold it inside of a money market fund, and then technically that won't be prescribed to this 22% tax on the interest that it earns. So yes, you could theoretically have 1p inside of an investment, 99% of your other portfolio inside of a money market fund, and this won't be subject to any tax at all. And the fact that most of you watching this are probably going like, what? What on earth does that mean to me? I've got no idea what you're talking about, proves my point. We do not need to make these ISAs more complex. The amount of people I know who start by putting a bunch of cash inside of a Stocks and Shares ISA and drip feed that into investments, who are now going to be subject to a penalty because that's their methodology, it's just nuts in my opinion. And then the question is, if you can start taxing inside of the one account we thought was untaxable, what else can you do?