Individual Savings Accounts (ISAs) are an excellent and valuable way to get more from your savings, as they’re tax free and don’t count towards your Personal Savings Allowance. For more on your Personal Savings Allowance, view our FAQs here.
From 6th April 2024, the government and HMRC have updated ISAs to make them simpler to manage and allow more flexibility and choice for savers and investors. Below we outline the main changes that have been made as this may impact you if you currently hold an ISA or are thinking about opening one.
Age Increase: The minimum age to open an adult ISA has been raised from 16 to 18 years old. Junior ISAs are still available up to 18 years of age. Some providers might offer an account to 16 and 17 year olds (those born between 6 April 2006 and 5 April 2008 can open one cash ISA before they turn 18).
Pay into multiple ISAs in the same tax year: Under the new rules, you are permitted to split your £20,000 allowance across multiple ISA products and financial institutions. Please check with your provider and the T&Cs of your ISA account to check you are eligible to do this.
Partial ISA transfer of current and previous years money: From 6th April, you can move part of your current years money, (i.e. if you’ve paid £15,000 in and want to move £10,000 to a new provider). Please check with your provider for any restrictions they may have on transferring ISAs. They may apply a charge for you to transfer. You can find our ISA transfer authority form here.
Declaration: From 6th April 2024 an ISA declaration is no longer required if you have had a break in subscriptions from one tax year to another (i.e you pay in 2022/23 but miss 2023/24). Please check with your provider to see if they require a declaration.
ISA allowance 2024/25
One area to note that isn’t changing in this tax year is your annual ISA allowance. As with previous years, the maximum amount you can invest in ISAs in a single tax year is £20,000. This allowance applies regardless of the number of ISAs you open. Junior ISAs have a lower annual limit of £9,000.
For more information on our ISA’s, please view our T&Cs here.