ISA changes announced in the Autumn Statement – 29th November 2023

The government announced the following package of ISA reforms which will take effect from 6th April 2024: 

• Allow subscriptions to multiple ISAs of the same type, with the exception of Lifetime ISA, within the tax year, removing the limit on subscribing to one ISA of each type per year. All subscriptions must remain within the overall ISA limit of £20,000.

• Remove the requirement for an investor to make a fresh ISA application where an existing ISA account has received no subscription in the previous tax year.

•  Allow Long-Term Asset Funds to be permitted investments in an Innovative Finance ISA, which does not require access to funds within 30 days.

• Allow open-ended property funds with extended notice periods to be permitted investments in an Innovative Finance ISA.

•  Allow partial transfers of current year ISA subscriptions between ISA managers.

• Increase the age for opening Cash ISAs from 16 to 18 and over. This is consistent with the age requirement already in place for opening Stocks and Shares, Innovative Finance and Lifetime ISAs.

•  The Junior ISA (JISA) and Child Trust Fund (CTF) limits will stay at £9,000 until age 18.

The government also plans to hold discussions with industry on allowing certain fractions of shares to become permitted ISA investments.