ISA’s from April 2024 - Community Forum (2024)

FAQs

What are the changes in ISA from April 2024? ›

1.1 Increase the age for opening cash ISAs from 16 to 18 years old and over. From 6 April 2024 it will not be possible for anyone aged 17 and under to subscribe to more than one cash ISA . This is a mandatory change with transitional arrangements.

As of 6 April 2024, you can now open more than 1 cash ISA each year. the deposit limit is still 20k over how may you have in each tax year.

The ISA allowance for 2024/25 is £20,000, unchanged from the last tax year. This means you can pay £20,000 into ISAs from 6 of April 2024 to the 5 of April 2025.

Putting money into an ISA

Every tax year you can save up to £20,000 in one account or split the allowance across multiple accounts. The tax year runs from 6 April to 5 April. You can only pay into one Lifetime ISA in a tax year.

You can open as many ISAs of the same type as you like

But you couldn't save into more than one ISA of the same type. Under the new rules, you can pay into multiple versions of the same type of ISA, up to your annual ISA allowance of £20,000 in each tax year.

You are free to use any withdrawal from your ISA as you see fit. If you withdraw cash from your ISA and place it in another non ISA account, then any interest the cash generates in that non ISA account, will be taxable. The withdrawal itself is not taxable, just the interest the withdrawal generates.

Higher minimum age for cash ISAs

The higher minimum age from 16 to 18 for cash ISAs is a transitional change. This means that ISA providers have from 6 April 2024 until 6 April 2026 to comply with the new rules. We've made these changes now, so from 6 April 2024 you'll need to be 18 or over to apply for our Direct ISA.

You can transfer an ISA at any point throughout the year, and, if you use your provider's transfer service rather than withdrawing and reinvesting the money yourself, you'll preserve your tax benefits and annual allowance.

You can pay into two ISAs in the same tax year provided they are different types of ISA. It would be fine to pay into both a cash ISA and a Stocks & Shares ISA in one tax year as long as you're below the £20,000 limit. You would not be able to pay into two different ISAs of the same type.

What happens if I go over the annual ISA allowance? Most providers will stop you from going over the ISA allowance limits, but if you have ISAs with multiple providers then this is an easy mistake to make. If you do go over the limit, the best thing to do is contact HMRC by calling their helpline on 0300 200 3312.

Can I put in 20k every year in an ISA? ›

Yes, you can add money to your Cash ISA every year, as long as the total amount does not exceed the ISA cap for 2024/25 of £20,000. There is no cash ISA limit. If you contribute to more than one type of ISA during the same tax year, this total amount of £20,000 must be split and shared across the ISA accounts.

No, transferring an ISA doesn't count as opening a new one and it won't affect your annual ISA allowance for that tax-year.

You can't carry allowances over, so if you think you might move into a higher tax bracket or breach the Savings Allowance, it's worth considering transferring your savings into ISAs sooner rather than later. You can find out more about paying tax on your savings here.

You can take money out of most ISAs whenever you want, without affecting the tax benefits. However, some types of ISAs have specific rules and costs around withdrawing, like the Lifetime ISA. Certain providers may even charge you to make a withdrawal – so always check the terms before you sign up.

The annual allowance resets at the end of the tax year, on the slightly random date of the 6th April. But it's never too late, and we mean never. Let's go into more detail on what ISAs are, how they work and why it really never is too late.

For tax year 2024, the standard deduction for married couples filing jointly rises to $29,200, an increase of $1,500 from 2023. For single taxpayers, the standard deduction rose to $14,600, a $750 increase from the previous year.

At the end of the fixed term, unless we receive instructions from you, your account will automatically change to an Instant Cash ISA.