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This year the Individual Savings Account (ISA), designed to help you save money by protecting it from Income Tax and CGT, will be celebrating its 25th birthday. During November’s Autumn Statement Chancellor Jeremy Hunt announced a range of ISA reforms that will simplify some rules and provide better flexibility, which is likely to prove beneficial to many savers and investors.  

So what will be changing? When will the changes come into force and how will they affect you? Let’s take a look:

What are the ISA reforms?

The following reforms are set to go ahead in the new tax year, from 6 April 2024:

Allowance freeze

The ISA allowance is the maximum amount you can add to your ISA each year tax free – you can split this between different ISA types as long as the overall amount doesn’t exceed the allowance. For the 2024/25 tax year, the government has announced that the allowance will remain at £20,000 for adult ISAs and £9,000 for Junior ISAs. 

Cash ISA age limit

The age limit for Cash ISAs will increase from 16 to 18+ so that it is in line with all other adult ISAs. Under 18s will be able to use a Junior ISA as normal.

Subscription changes

Under the current rules, you cannot subscribe to more than one ISA of each type per tax year. However, the government is lifting this restriction and from the new tax year you’ll be able to subscribe to multiple ISAs of the same type – except Lifetime ISAs. 

Partial transfers

Another promising change is that the government will allow partial transfers of current tax year subscriptions between providers so that you can control how much you want to transfer – you’ll no longer be required to transfer your entire subscription.


At present, if you have an ISA account that is deemed ‘dormant’ (meaning you didn’t pay into it in the previous tax year), you need to ‘reapply’ for your application, but from April this will be scrapped, making it easier, more convenient and less confusing for savers and investors. 

Innovative Finance ISA

If you use – or plan to use – an Innovative Finance ISA you’ll be pleased to hear that from the new tax year Long-Term Asset Funds and open-ended property funds with extended notice periods will be allowed.  

Fractional shares

The government also has plans to allow certain fractional shares as ISA investments, although this isn’t yet confirmed. 

For further guidance on the ISA reforms, please visit the Autumn Statement ISA summary on the government’s website.

Are these ISA changes beneficial to me?

It’s important to remember that tax rules and regulations surrounding ISAs can change, and although there’s no arguing that ISAs are a valuable and favourable option, it doesn’t mean that they’re the right decision for everyone. Whether you’re likely to benefit from saving money in an ISA will depend on your specific circumstances and what your future plans might be, so we highly recommend that you seek professional advice to ensure your portfolio is as tax efficient and effective as possible. 

Here at Warr & Co, we offer a range of tax planning services for individuals. We’ll work in partnership with you to minimise your tax exposure and plan effectively, taking into account your individual circumstances and goals for the future. Find out more by visiting our Tax Planning webpage or by booking a free, no-obligation tax planning consultation now.

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