Craig Rickman, personal finance editor at interactive investor, expressed skepticism about whether the tax penalty and reduced limits would motivate under-65 savers to enter the stock market.
"It seems unlikely that applying a tax charge and slashing the cash ISA limit will prove the silver bullet," said Rickman.
Rickman suggested savers might instead keep excess funds in standard taxable accounts rather than adjusting to retail investment portfolios.
"There is a real possibility that many under-65s will stick with what they know and put savings above the new £12,000 cash ISA allowance into taxable accounts rather than take the investing plunge," he said.
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The Treasury's anti-circumvention factsheet confirmed that cash-like assets, such as diversified money market funds, will remain eligible for non-cash ISAs without incurring the 22 percent tax, provided they do not make up 100 percent of the individual's portfolio.
