The 2024/25 tax year has brought with it some changes to the rules around individual savings accounts (ISAs) in the UK.
The updates were announced by the Chancellor of the Exchequer, Jeremy Hunt, last year, but came into effect on April 6th.
Importantly, the £20,000 tax-free ISA allowance remains unchanged for 2024/25. This is the maximum figure you can invest each tax year and pay no tax on the returns generated, and it’s spread across whatever ISAs you may have.
What’s changed?
Invest in more than one of the same type of ISA
The biggest change for the 2024/25 tax year is the ability to invest in more than one of each type of ISA in a single tax year.
Previously, you could invest into only one stocks and shares ISA per year, for example. Now, you can hold and invest into multiple. So, investors could have a stocks and shares ISA with their primary provider, but also try out another platform in the same tax year and incur no tax penalty.
You can now partially transfer an ISA
The other major change for the 2024/25 tax year is that investors can now transfer part of their ISA from one provider to another, regardless of when the money was paid in.
Previously, if you wanted to transfer your ISA, you had to also transfer all of your top ups from that tax year. Now, you can transfer part of your ISA with a lot more flexibility.
We’re not able to accept partial ISA transfers just yet in the same tax year, but check back for updates! We can, of course, still accept full transfers.
Get a bonus when you transfer
Transfer your ISA to InvestEngine before the end of April and we’ll give you a boost of up to £2,500.
Find out how much you could get here.*
Important information
Capital at risk. The value of your portfolio with InvestEngine can go down as well as up and you may get back less than you invest. ETF costs also apply.
This communication is provided for general information only and should not be construed as advice. If in doubt you may wish to consult a professional adviser for guidance.
Tax treatment depends on personal circumstances and is subject to change, and past performance is not a reliable indicator of future returns.