Are you aware of upcoming ISA changes?

A recent survey undertaken by Wesleyan Financial Services highlighted that over three-quarters (78%) of UK adults are still unaware of the new Individual Saving Account (ISA) rule changes that are set to come into effect in April 2024.

The rule changes, announced by the Chancellor in his autumn statement, are designed to simplify the  ISA scheme and encourage more people to invest tax-free.

These changes allow investors to open multiple ISAs of the same type every tax year.

What are the key Isa changes?

Some of the changes the Chancellor made are as follows:

From 6th April 2024, it will be possible to make multiple subscriptions to the same type of ISA in one tax year. The current rule is one ISA of each type, each tax year.

Partial transfers of current tax year ISAs can be made. Currently, the entire subscription must be transferred.

If you hold an existing ISA that received no contribution in the previous tax year, a fresh ISA application is no longer required.

However, in a survey of 2,000 UK adults by Wesleyan, 78% said they did not know about this rule change.

Are people missing out?

The survey also uncovered some misunderstandings about ISAs that could mean that savers are missing out.

70% of those surveyed said they don’t know how different types of ISA work.

Of those who don’t hold ISAs, 45% believe that you need a large sum of money to open an ISA, while 22% said they did not want to lock their money away where they cannot access it. Both are untrue.

ISAs and tax year-end planning

ISAs have always been sought for those who can regularly invest the full annual allowance and so build up substantial tax-free savings. With the Capital Gains Tax annual exempt amount and the Dividend Allowance being reduced next tax year, they are becoming more attractive to those wishing to set aside smaller regular or one-off lump sums.

How Anstee & Co. can help you with your tax planning.

We are a firm of Independent Financial Advisers (IFAs). This means that the advice we offer is unbiased. Our team of financial advisers can help you with your tax planning.

The first “getting to know you” meeting, is at our expense and is without obligation. So, why not arrange a meeting today to see how we can design a financial solution for you?

Our head office is located at-

Kettering, Northamptonshire

Also, our financial advisers live and make use of meeting rooms located at-

• Bedford, Bedfordshire
• Market Harborough, Leicestershire
• Northampton, Wellingborough, Thrapston and Towcester in Northamptonshire.

Additionally, we can meet you at your home or through video conferencing. The choice is yours.

If you have any thoughts or comments on this article, “Are you aware of upcoming ISA changes?”, then it would be great to hear your views.

Finally, the information contained in this article is for information purposes only and does not constitute financial advice. No action should be taken based on this information alone. Anstee & Co is authorised and regulated by the Financial Conduct Authority (FCA).