ISA changes (or lack of changes) in the Autumn 2024 budget

SnowMan

Nothing in the speech

And scroll down from this HMRC link and ISA limits unchanged for 2025/2026

https://www.gov.uk/government/publications/autumn-budget-2024-overview-of-tax-legislation-and-rates-ootlar/annex-a-rates-and-allowances

dunstonh

Some errors on that page though. e.g.



Has the Government brought back the £2,000 dividend allowance? - almost certainly not.  It looks like a typo carried over from a previous template when it used to be £2,000

Later on the page it shows the correct figure:

SnowMan

Good spot, yes £2,000 is the 2022/2023 figure, so clearly an error

armistice

Nothing mentioned in the speech, but according to the notes the 20K annual limit stays the same until 2030.
The British ISA is scrapped, so no extra allowance there.

5.58 Individual Savings Accounts, Lifetime ISA, Junior ISA and Child Trust Fund Allowance – Annual subscription limits will remain at £20,000 for ISAs, £4,000 for Lifetime ISAs and £9,000 for Junior ISAs and Child Trust Funds until 5 April 2030.

 5.61 British ISA – The government will not proceed with the British ISA due to mixed responses to the consultation launched in March 2024
Autumn Budget 2024 – HC 295

SnowMan

That's great news. I'd assumed we would be speculating next year about an overall ISA limit again but perhaps not, albeit an overall ISA limit is different to the annual subscription limit.

Not of great relevance but in that same document, digital reporting by ISA managers will be mandatory from 6 April 2027.

Hal17

There is also some errors on the Income Tax bands on the linked document.

Ops sorry my fault - I forgot to add the personal allowance to the figures shown.

poseidon1

With ISAs  (surprisingly) left untouched in this budget, I do wonder if there maybe behavioural changes going forward occasioned by the proposed removal of the IHT exemption for pension schemes.

It seems to me for some married couples ( with kids), there maybe more reason to  take the Sipp 25% TFC upfront and using the £40k joint annual ISA allowance to built up an entirely tax free pot over time,  to supplement retirement income, compared to the more measured UFPLS approach.

The IHT exemption on 2nd death for pension schemes currently makes it attractive to retain substantial funds within one's SIPP for the ultimate benefit of the next generation.

However, now pension funds ( from 2027  ) may face the same IHT exposure as any other asset, it does seem less appealing  ( from an IHT point of view) to run down ones non pension assets in favour of retaining a healthy Sipp balance on 2nd death.

Obviously the devil will be in the detail regarding the changes to Sipp future IHT exposure, but in the meantime it will be interesting to see if there is a significant uptick in TFC funded ISA contributions over the next couple of years.

No doubt the IFA contributors to this forum, might indicate whether they  eventually see any such behavioural changes in the months/years to come.