Autumn statement - ISA rule changes from April 2024

masonic

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.

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 ?

Perhaps a perpetual version of a P2P mini-bond. Unlikely to be anything most of us would want in our S&S ISAs. Potentially it paves the way for non-provider-specific securities to be held within an IF ISA.

masonic

eskbanker said:

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.

Anyone 16-17 can currently choose between a JISA, adult cash ISA, or both. From April it will be JISA only.

eskbanker

masonic said:

eskbanker said:

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.

Anyone 16-17 can currently choose between a JISA, adult cash ISA, or both. From April it will be JISA only.

Yes, I was meaning that any given JISA has to be held until 18, rather than that under-18s can only use JISAs!

Reed_Richards

I would have thought that allowing multiple ISA subscriptions would eliminate about 50% of the questions posted here.

masonic

Reed_Richards said:

I would have thought that allowing multiple ISA subscriptions would eliminate about 50% of the questions posted here.

Eventually perhaps, but I expect an increase in discussion as a result of the rules changing, perhaps even an uptick in disagreements about paying into multiple ISAs.

All those historic threads (and unmaintained internet content) on the subject will need to be disregarded.

Boodedoo

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. 

For the hard of understanding (me!) please could someone clarify for me . . 
Does this mean that it will be possible to have both a fixed rate cash ISA  AND  an easy access cash ISA in the same tax year (as long as the combined 'new money' for that tax year does not exceed the £20k limit?

masonic

Boodedoo said:

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. 

For the hard of understanding (me!) please could someone clarify for me . . 
Does this mean that it will be possible to have both a fixed rate cash ISA  AND  an easy access cash ISA in the same tax year (as long as the combined 'new money' for that tax year does not exceed the £20k limit?

Yes, the number of ISAs you can distribute your allowance between will no longer be limited.

Boodedoo

Thank you, I was concerned that 'type' would cover  fixed rate v  easy access rather than just cash or shares.
When we get to the next tax year I am hoping to open a fixed rate one with perhaps £15k and gradually build the balance of £5k into an easy access one.

Reed_Richards

What does "of the same type" mean?  You have been able to split your maximum investment between Cash ISAs and Stocks and Shares ISAs for years.  So does this mean you can now have multiple Cash ISAs but only one Stocks and Shares or Multiple Stocks and Shares but only one Cash?  Or what?     

jimjames

Reed_Richards said:

What does "of the same type" mean?  You have been able to split your maximum investment between Cash ISAs and Stocks and Shares ISAs for years.  So does this mean you can now have multiple Cash ISAs but only one Stocks and Shares or Multiple Stocks and Shares but only one Cash?  Or what?     

It means you can have multiple cash or S&S ISAs that you pay into during the same year. I'd initially thought it wouldn't really be much benefit but on reflection the ability to top up my iWeb ISA with a lump sum to buy shares while paying into funds in my Vanguard ISA could be quite handy.