What You Need to Know About the New ISA Regulations in 2024

The total ISA allowance remains at £20,000 per tax year. (For individuals aged 18 and above)

Currently, you have the option to divide this allowance among a Stocks and Shares ISA, a Cash ISA, an Innovative Finance ISA, and a Lifetime ISA (up to £4,000 per tax year, which contributes to the overall £20,000 limit).

The Junior ISA (JISA) allowance will remain at £9,000. This is accessible to individuals under the age of 18.

You can now pay into the same type of ISA with different providers

If better deals become available, individuals who save money will have the option to open new cash ISAs. This increased flexibility will allow some funds to be placed in a fixed-rate deal, while keeping a portion in an easy-access cash ISA as a reserve.

Investors will have the opportunity to diversify their investments across multiple providers. For instance, a stocks and shares ISA may be utilized for long-term investments, while another with low transaction costs can be used for frequent trading.

It's important to note that this rule change does not impact the Lifetime ISA or Junior ISA.

Individuals are still limited to subscribing to only one Lifetime ISA per year. Additionally, they can only open one Cash and one Stocks and Shares Junior ISA for a child.

You can now do partial transfers between ISA providers

Starting from April 2024, ISA savers and investors will have more flexibility and control. Currently, the rules require transferring either the full amount or nothing for current year ISA transfers. This update allows you to transfer the amount of your choice, regardless of when the subscription was made.

For more information on ISAs, refer to HMRC’s basic guide to ISAs.