Autumn Budget 2024 Individual Savings Accounts
Published / Last Updated on 05/11/2024
In the Autumn Budget 2024 there were no changes to the annual allowance for Individual Savings Accounts and the rumour of a new lifetime cap on ISA funds were unfounded.
- Main ISA annual subscription remains at £20,000.
- Main LISA (lifetime ISA) annual subscription remains at £4,000 for 18 to 40 yr olds and the 25% government bonus remains.
- Main JISA (junior ISA) annual subscription remains at £9,000.
These limits will remain at this level until 5 April 2030.
British ISA
The proposal for an additional ISA allowance under the title British ISA with an additional savings allowance of £5,000 pa for adults has been scrapped.
Originally, the intention was to encourage individuals to invest in mainly UK assets. This was to be used to crank up investments in the UK rather than much of UK savings being invested overseas. The plan was to have a minimum 75% invested listed UK stocks and gilts. The consultation period ended in June and clearly, the new government has decided not to proceed with this.
Initial Thoughts
Given the increases to capital gains tax rates for general investments (non-residential property), we suggest you ensure you sell any general investments accounts but only up to your capital gains tax annual allowance of £3,000 pa. Remember, this is not the total value of the investment sold but the gain e.g., if you invested £7,000 in shares and they are now worth £10,000, you have made a gain of £3,000, so you could transfer the whole £10,000 into an ISA with no capital gains tax payable.
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