Autumn statement - ISA rule changes from April 2024

refluxer

Courtesy of Martin Lewis on X (Twitter)...

"ISAs being tinkered with one key one - adult ISAs only openable by age 18+ from April (currently age 16+). Plus fractional shares allowed, partial transferred allowed and more. My team and I will be digging, it's all in the background #AutumnStatement docs"

Plus, in one of the replies (which I've not yet been able to verify), this fairly big change was mentioned...

"5.38 ISA: Allowing multiple ISA subscriptions – The government will allow multiple subscriptions to ISAs of the same type every year from April 2024."

born_again

refluxer said:

"5.38 ISA: Allowing multiple ISA subscriptions – The government will allow multiple subscriptions to ISAs of the same type every year from April 2024."

Would be interesting to know if that is with the current £20K limit, or will each ISA have it's own £20K limit.

jimjames

Link here, page 90. No mention of changes to limits so single allowance of £20k I suspect. If you're under 18 and want an ISA get opening before April.

https://assets.publishing.service.gov.uk/media/655df827544aea000dfb3277/E02982473_Autumn_Statement_Nov_23_Accessible_v2.pdf

Personal Tax and Savings
5.38 ISA: Allowing multiple ISA subscriptions – The government will allow multiple subscriptions to ISAs of the same type every year from April 2024.

5.39 ISA: Allowing partial transfers between providers – The government will allow partial transfers of ISA funds in-year between providers from April 2024.

5.40 ISA: Removing the requirement to reapply for an existing ISA annually – The government will remove the requirement to reapply for an existing dormant ISA from April 2024.

5.41 ISA: Expanding the Innovative Finance ISA to include Long-Term Asset Funds – The government will allow Long-Term Asset Funds to be permitted investments in the Innovative Finance ISA from April 2024.

5.42 ISA: Expanding the Innovative Finance ISA to include open-ended property funds with extended notice periods – The government will allow open-ended property funds with extended notice periods to be permitted investments in the Innovative Finance ISA from April 2024.

5.43 ISA: Allowing certain fractional shares contracts as a permitted investment – The government intends to permit certain fractional shares contracts as eligible ISA investments and will engage with stakeholders on implementation.

5.44 ISA: Digitalise the ISA reporting system – The government is announcing the digitalisation of the ISA reporting system to enable the development of digital tools to support investors.

5.45 ISA: Harmonise ISAs to those over 18 years of age – The government will harmonise the account opening age for any adult ISAs to 18 from April 2024.

5.46 ISA, JISA, LISA & CTF Annual Limits – The government is freezing the Individual Savings Account (£20,000), Junior Individual Savings Account (£9,000), Lifetime Individual Savings Account (£4,000 excluding government bonus) and Child Trust Fund (£9,000) limits at their current levels for 2024-25.

Kim_13

Doesn’t sound like they’ve heeded Martin’s advice to reduce the Lifetime ISA penalty to 20% then. They could have kept it at 25% unless buying a first home and providing proof of that.

Albermarle

born_again said:

refluxer said:

"5.38 ISA: Allowing multiple ISA subscriptions – The government will allow multiple subscriptions to ISAs of the same type every year from April 2024."

Would be interesting to know if that is with the current £20K limit, or will each ISA have it's own £20K limit.

If that was the case then you could put Hundreds of thousands of pounds into ISA's every year, and would only be of benefit for very rich people to avoid tax.

Albermarle

5.41 ISA: Expanding the Innovative Finance ISA to include Long-Term Asset Funds – The government will allow Long-Term Asset Funds to be permitted investments in the Innovative Finance ISA from April 2024.
5.42 ISA: Expanding the Innovative Finance ISA to include open-ended property funds with extended notice periods – The government will allow open-ended property funds with extended notice periods to be permitted investments in the Innovative Finance ISA from April 2024.

Not sure what is meant by long term asset funds? Is that not what most of us keep in our S&S ISA's anyway ?

I presume from the second point that you are not allowed to have open ended property funds with extended notice periods in S&S ISA's now ? ( as they are not very liquid ) 

Hoenir

Kim_13 said:

Doesn’t sound like they’ve heeded Martin’s advice to reduce the Lifetime ISA penalty to 20% then. They could have kept it at 25% unless buying a first home and providing proof of that.

What seems to get overlooked is the bonus which is credited the month after the deposit is made. The bonus also earns a return that will compound over time. With interest rates at elevated levels. The clawback seems justified. Better it returned to the Treasury. Than remaining in the savers hands, 

Ocelot

Albermarle said:

born_again said:

refluxer said:

"5.38 ISA: Allowing multiple ISA subscriptions – The government will allow multiple subscriptions to ISAs of the same type every year from April 2024."

Would be interesting to know if that is with the current £20K limit, or will each ISA have it's own £20K limit.

If that was the case then you could put Hundreds of thousands of pounds into ISA's every year, and would only be of benefit for very rich people to avoid tax.

Or people who want to move all of their existing taxable accounts to tax free!

jimjames

Albermarle said:

5.41 ISA: Expanding the Innovative Finance ISA to include Long-Term Asset Funds – The government will allow Long-Term Asset Funds to be permitted investments in the Innovative Finance ISA from April 2024.
5.42 ISA: Expanding the Innovative Finance ISA to include open-ended property funds with extended notice periods – The government will allow open-ended property funds with extended notice periods to be permitted investments in the Innovative Finance ISA from April 2024.

I presume from the second point that you are not allowed to have open ended property funds with extended notice periods in S&S ISA's now ? ( as they are not very liquid ) 

I'm guessing that they're allowed in S&S ISAs now but not in IF ISAs until next April

LHW99

If you now have to be over 18 to open an adult ISA, instead of 16, does that mean a JISA can be used up until 18?

Not sure if that was the case before, but if it was previously only up to 16, then that's 2 additional years of lower investment limit when this change comes into effect.

eskbanker

LHW99 said:

If you now have to be over 18 to open an adult ISA, instead of 16, does that mean a JISA can be used up until 18?

Not sure if that was the case before, but if it was previously only up to 16, then that's 2 additional years of lower investment limit when this change comes into effect.

JISAs have always been valid up to 18, and indeed must be used up to then.