Autumn Statement - Multiple ISA subscriptions allowed

ColdIron

Among other announcements

• Multiple ISA subscriptions allowed
• The government will allow multiple subscriptions to ISAs of the same type every year from April 2024.
• Prior to today’s changes, savers could only use one ISA in each category within a tax year.
• For example, you could not mix two different stocks & shares ISA from say Hargreaves Lansdown and AJ Bell, nor could you have two cash ISAs from separate banks.

• Fractional shares
• Certain fractional shares contracts will now be considered as a permitted investment within stocks & shares ISAs also.
• ‘The government intends to permit certain fractional shares contracts as eligible ISA investments and will engage with stakeholders on implementation,’ the government stated.

https://citywire.com/wealth-manager/news/autumn-statement-fractional-shares-and-ltafs-permitted-in-isa-overhaul/a2431047

Middle_of_the_Road

I have the feeling these changes, whilst not having much benefit for the majority of savers/investors, will add to the confusion around ISA rules many experience already.

pecunianonolet

I welcome the new ISA rules as it will be easier to move cash, split between providers and that should allow more competition and gives greater flexibility operating flexible ISA's, of which there are sadly not that many around.

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

4.47 The government is making changes to simplify ISAs and provide more choice, meaning it will be easier for people to choose the best ISA accounts for their needs and move money between them. This involves digitalising the ISA reporting system to make it more effective, as well as expanding the investment opportunities available in ISAs to include Long-Term Asset Funds and open-ended property funds with extended notice periods.

Source: Page 65 

The government is also making it easier for people to choose the best ISA accounts for their needs and move money between them. 

Source: Page 78

Individual Savings Accounts: maintain subscription limits at current levels for 2024-25 for Adult, Junior, Lifetime ISAs and Child Trust Fund

Source: Page 83

Individual Savings Accounts: bring Long Term Asset Funds into the scope of Innovative Finance ISAs from April 2024

Source: Page 84

Source: Page 90

Rich2808

I think it will simplify things and avoid the risk of mistakes. In a world of high rates - and moving rates - this change is needed.

Perhaps bad news for split isa providers like Paragon or Nationwide though.

No sign in the end of this promised £5k higher British ISA allowance per year if you invested in British stocks and shares. Clearly got dropped!

Kim_13

I don’t think the cash ISA changes will - that you can do what you like subject to the 20K limit is a common assumption.

Perhaps there’ll be a few who have vaguely heard the rules have changed, cue ‘this ISA is closed to further contributions’ ‘but I thought there were no rules preventing me using the full allowance after taking a fix now’ type but this is still better - the remaining allowance isn’t lost in the way that it was if you fixed say £1,000 and happened to have used a provider who didn’t offer further contributions during the term or portfolio ISA’s (unless you were prepared to transfer or use a different type of ISA of course.) It’ll be the ‘you can take as many fixes as you want at the rates prevailing at the time of opening each’ that needs to be understood now - and maybe the few offering contributions during the term will go, as your allowance isn’t ‘stuck’ with that provider.

The changes seem to me to benefit those who would like to fix but who can only afford to invest little and often, in addition to rate chasers saving into an Easy Access that can then be transferred into multiple fixes. Breaking the 20K into chunks is better if there’s a chance you might need some of the money, then if the provider says early closure only, you only have to pay the penalty on the chunk that you need.  

Hoenir

Rich2808 said:

No sign in the end of this promised £5k higher British ISA allowance per year if you invested in British stocks and shares. Clearly got dropped!

Never recall it being promised. Suspect that it would form part of a much wider policy initiative. Today was very much focussed on the broader economy longer term rather than personal affairs. The Spring budget is when personal matters take centre stage. 

wmb194

Rich2808 said:

I think it will simplify things and avoid the risk of mistakes. In a world of high rates - and moving rates - this change is needed.

Perhaps bad news for split isa providers like Paragon or Nationwide though.

No sign in the end of this promised £5k higher British ISA allowance per year if you invested in British stocks and shares. Clearly got dropped!

IIRC the FT reported that something non-specific along these lines to promote investment in and give reasons for British companies to list in London will be presented at the next budget* in March.

*Or whatever it's called now.

ircE

So, this is great, right?

I can continue chucking in my regular payments to my S&S ISA which has a certain range of funds on one platform, my S&S LISA which is in one fund on another platform, and from next year I'll be able to chuck in any spare change I have on fractional shares, whole shares, or funds in other S&S ISA platforms... and/or LTAFs and open-ended property funds through IF ISAs... as long as all contributions don't breach the overall £20k per tax year limit.

friolento

 Subject to decent rates, this could be great for building a fixed rate monthly ISA ladder

 Not starting until next tax year though 

pecunianonolet

friolento said:

 Subject to decent rates, this could be great for building a fixed rate monthly ISA ladder

 Not starting until next tax year though 

Imagine Zopa pots under an ISA wrapper

Qyburn

pecunianonolet said:

Imagine Zopa pots under an ISA wrapper

Zopa already has ISA pots