How ISA rules are changing in 2024-25

Individual savings accounts, or ISAs, are a hugely popular and tax-efficient way to save and invest money.

However, savers should be aware that the rules on ISAs are changing in the 2024-25 tax year.

The changes have been described by consumer group Which? as “the biggest shake-up to tax-free savings in 15 years”, so let’s take a look at what’s new.

Single ISA limit removed

Under the old rules, you could only contribute to one ISA of a specific type, such as a Cash ISA or Stocks and Shares ISA, in a single tax year.

But under the new system, savers will be free to split their ISA allowance across multiple ISAs of the same type.

As a result, you’ll have more flexibility to tailor your savings strategy to your specific needs and priorities and shop around for the best rates.

Simplified ISA management

If your ISA has laid dormant and unused for one tax year, savers would have to go through the effort and inconvenience of getting in touch with their provider and opening a new ISA.

This rule is now being removed, so even if you haven’t contributed to an existing ISA, it will remain open and you can carry on contributing in a subsequent tax year without having to fill in any forms.

Minimum age raised

The age at which a person can open an adult ISA is changing from 16 to 18. This brings it in line with adult stocks and shares ISAs.

However, this means that while 16 to 17-year-olds can carry on saving in a Junior ISA, they’ll get a much lower annual tax-free allowance of just £9,000, compared with £20,000 for adult ISAs.

Expanded Innovative Finance ISA options

Long-Term Asset Funds (LTAFs) and other investment products with extended lock-in periods are now permissible within Innovative Finance ISAs. This opens up new options for investors who are looking for alternative investment opportunities with tax benefits.

What does this mean for you?

Ultimately, the changes to the ISA rules will give you much greater flexibility and choice over what you do with your money.

For example, having the freedom to put money in multiple ISAs of the same type means you can optimise your savings strategy to take advantage of the best interest rates.

And if, for some reason, you haven’t contributed to an ISA in a particular tax year, you can resume where you left off without having to submit unnecessary applications.

ISA rules aren’t set in stone, so making sure you’re up-to-date with any changes that affect you and your financial decisions is crucial.

That’s particularly important in light of the Chancellor’s recent announcement that a new ISA product could be introduced in the near future.

As Jeremy Hunt confirmed in the Budget, a consultation is to be launched on creating a £5,000 British ISA tax allowance, which would enable savers to benefit from the growth of the “most promising” domestic businesses and support them with the capital to help them expand.

But of course, keeping up with every twist and turn in the financial services market is a hugely difficult task.

That’s why it’s so beneficial to speak to a professional financial adviser, who can give you personalised, expert guidance that reflects your specific needs, circumstances and priorities.

With a specialist in this field pointing you in the right direction, you can feel empowered to make informed decisions, make the most of your ISAs and achieve your financial and lifestyle goals.

If you have any questions on saving for the future and making your money work as hard as possible for you, please don’t hesitate to get in touch.

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The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK. Welby is a trading name of Welby Associates Wealth Management Ltd Company Registered Number NI630504 who is authorised and regulated by the Financial Conduct Authority, FCA register number 697372. The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren't able to resolve themselves. To contact the Financial Ombudsman Service please visit

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