The Autumn Budget included some changes to the Individual Savings Account (ISA) regime, which provides a tax-efficient way of saving and investing money. The changes aim to make the ISA regime more flexible, accessible, and digital.
Some of the key takeaways that apply from 6 April 2024 are:
- The annual subscription limits for ISAs, Child Trust Funds, and Junior ISAs will remain the same for 2024–25. This means that individuals can save up to £20,000, £9,000, and £9,000 in these accounts respectively, without paying any tax on the interest, dividends, or capital gains they earn.
- ISA savers will be able to make multiple subscriptions per year to ISAs of the same type — such as cash ISAs or stocks and shares ISAs — instead of being restricted to one subscription per type per year. This will give savers more choice and flexibility in managing their savings.
- ISA savers will no longer need to make a fresh application to their ISA provider if they didn’t make any subscription in the previous tax year. This will reduce the administrative burden on savers and providers and make it easier for savers to resume their ISA subscriptions.
- The opening age for any adult ISA will be standardised at 18, instead of varying depending on the type of ISA. This will simplify the ISA scheme and make it more consistent for savers.
Also, the Help to Save account, which offers a 50% bonus to low-income savers who save up to £50 a month for four years, will be reformed. A new design and consultation process on how to deliver it will be published in due course.
Author: Niamh Ferguson, CT: Personal Tax
