ISA Rule Changes
The landscape of Individual Savings Accounts (ISAs) is on the cusp of change with new rules set to take effect from 6 April 2024. Regardless of what type of ISA you have, these modifications aim to simplify ISAs and expand the range of eligible investments, promising more flexibility, choice, and control for investors. Here’s a summary of the new rule changes:
- Multiple Subscriptions Across Providers
From 6 April 2024, you’ll be able to subscribe to multiple ISAs of the same type within the same tax year, across different providers. This will eradicate the need to tether your annual ISA investment to a single provider per ISA type, opening up opportunity to optimise your investments according to evolving rates and offerings.
- Partial Transfers of Current Year Subscriptions
New flexibility to transfer parts of your current year ISA subscriptions between providers, replaces the all-or-nothing limitation of previous rules.
- Including more within the Innovative Finance ISA (IFISA)
An expansion of permissible investments within IFISAs, includes long-term asset funds (LTAFs) and open-ended property funds in addition to P2P loans. However, investments into P2P loans will remain the only investment option within Folk2Folk’s IFISA.
- No need to apply for dormant ISAs
From April 2024 investors will no longer need to reapply for existing ISA accounts every year, previously if you had an exiting ISA that you were not actively contributing to you were required to reapply for it annually.
