Autumn Statement 2023 Biggest Overhaul of ISAs Since 1999
Published / Last Updated on 23/11/2023
The individual Savings Account (ISA) replaced the Personal Equity Plan in 1999. Chancellor Jeremy Hunt announced the biggest overhaul to ISA rules in 24 years in the Autumn Statement. The following will apply from April 2024:
- Multiple ISA subscriptions – allowing unlimited multiple subscriptions with different to ISAs of the same type every year within your ISA allowances.
- Partial ISA Transfers Between ISA Providers – allowing partial transfers of ISA funds in-year between providers.
- Remove Yearly Requirement to Reapply For An ISA – removing the requirement to reapply to a firm where you have an existing ‘dormant’ ISA, you can simply reopen by contributing more money (without an application) or rollover.
- Include Long-Term Asset Funds In Innovative Finance ISAs – allowing investment in Long-Term Asset Funds inside an Innovative Finance ISA such as a company's property, plant, and equipment or even intangible assets, which you cannot physically such as a company's trademark, patents, or copyrights.
- Include Open-Ended Property Funds With Extended Notice Periods In Innovative Finance ISAs – allowing open-ended property funds with extended notice periods in an Innovative Finance ISA.
- Allow Fractional Shares In ISA Funds – allow investment some fractional shares (a faction of a share rather than a full share, which may occur from mergers, or acquisitions. Whilst cryptocurrency is not currently allowed, crypto is a classic example of a fractional share e.g., many people invest in bitcoin platforms but only buy a small part/fraction of one bitcoin.
- Digitise ISA Reporting Systems – To enable digital tools to be developed to support investors (our best guess example could be to allow investors to transfer from one ISA to another automatically in the same way to the Current Account Switch Service).
Sadly, ISA annual contribution limits remain unchanged for Adult ISA - £20,000, Junior ISA - £9,000, Lifetime ISA - £4,000 (+£1,000 government bonus) & Child Trust Funds - same as Junior ISA at £9,000 for those that still have them).
