Autumn Statement - Changes to ISA regulations

[mike]

Not announced in the statement, but in the back-up documentation, we have the following from April 2024

Allowing multiple ISA subscriptions – The government will allow multiple subscriptions to ISAs of the same type every year from April 2024.

Allowing partial transfers between providers – The government will allow partial transfers of ISA funds in-year between providers from April 2024.

Removing the requirement to reapply for an existing ISA annually – The government will remove the requirement to reapply for an existing dormant ISA from April 2024.

Expanding the Innovative Finance ISA to include Long-Term Asset Funds – The government will allow Long-Term Asset Funds to be permitted investments in the Innovative Finance ISA from April 2024.

Expanding the Innovative Finance ISA to include open-ended property funds with extended notice periods – The government will allow open-ended property funds with extended notice periods to be permitted investments in the Innovative Finance ISA from April 2024.

Allowing certain fractional shares contracts as a permitted investment – The government intends to permit certain fractional shares contracts as eligible ISA investments and will engage with stakeholders on implementation.

Digitalise the ISA reporting system – The government is announcing the digitalisation of the ISA reporting system to enable the development of digital tools to support investors.

Harmonise ISAs to those over 18 years of age – The government will harmonise the account opening age for any adult ISAs to 18 from April 2024.

ISA, JISA, LISA & CTF Annual Limits – The government is freezing the Individual Savings Account (£20,000), Junior Individual Savings Account (£9,000), Lifetime Individual Savings Account (£4,000 excluding government bonus) and Child Trust Fund (£9,000) limits at their current levels for 2024-25.

LTA Abolition – The government will legislate in the Autumn Finance Bill 2023 to remove the Lifetime Allowance. The measure will clarify the taxation of lump sums and lump sum death benefits, and the application of protections, as well as the tax treatment for overseas pensions, transitional arrangements, and reporting requirements. This will take effect from 6 April 2024.

https://www.gov.uk/government/publicati ... ement-2023 and choose your presentation. The above start at paragraph 5.38

Interesting the first three changes, that funds can be deposited in any of our ISA providers as suit our needs

[Lootman]

Removing the requirement to reapply for an existing ISA annually – The government will remove the requirement to reapply for an existing dormant ISA from April 2024.

I do not really understand that. Annually I just do a cash transfer from my taxable account to my ISA every April 6th. There is no "reapplication" process - it is instantly assumed by the act of the transfer.

[mike]

Removing the requirement to reapply for an existing ISA annually – The government will remove the requirement to reapply for an existing dormant ISA from April 2024.

I do not really understand that. Annually I just do a cash transfer from my taxable account to my ISA every April 6th. There is no "reapplication" process - it is instantly assumed by the act of the transfer.

If you only have one ISA, then yes, no problem. But if you have multiple ISA accounts and have not contributed to one or more recently, then those from the prior-but-one year and before are classed as dormant, and must be formally reactivated. Not a hugh imposition granted, but still needs to be done.

[Gerry557]

As someone who accidentally funded two ISA providers by mistake. I welcome some of these changes. Even though I was still within the limits there was a bit of worry about what action might be taken.

I have also had problems funding an ISA when a share does a placing. Often having to sell in one provider to generate the cash and rebuy in the current one.

Being able to move funds across providers will be useful. Hopefully it's made much easier than my last attempts.

[88V8]

Not announced in the statement, but in the back-up documentation, we have the following from April 2024

Allowing multiple ISA subscriptions – The government will allow multiple subscriptions to ISAs of the same type every year from April 2024.

Dang.
For a few moments I thought this meant that I could open multiple £20k ISAs.
Back to sleep.

V8

[Gerry557]

Not announced in the statement, but in the back-up documentation, we have the following from April 2024

Dang.
For a few moments I thought this meant that I could open multiple £20k ISAs.
Back to sleep.

V8

You can, you can open x10......... over the next decade.

[Laughton]

I have also had problems funding an ISA when a share does a placing. Often having to sell in one provider to generate the cash and rebuy in the current one.

Which will the first provider to make a charge?

[Lootman]

Dang. For a few moments I thought this meant that I could open multiple £20k ISAs. Back to sleep.

You can, you can open x10......... over the next decade.

One way they could have given us a tax cut without cutting marginal rates would have been to adopt a much higher annual subscription amount, even if just for this tax year. How about £200,000?

Any cost of that due to lower CGT and dividend tax would be gradual with no immediate hit to revenues. And it might mean many people no longer need to do a SA return.

There is very little in this budget for investors, many of whom cannot benefit from the one big tax cut, to NIC rates.

[Gerry557]

Well for investors, companies will pay less national insurance.

I'm not sure about £200k allowance. I think the £20k is quite generous really. Some don't even earn that much to begin with.

Although if you do have free cash over the limit I can see why you would call for a bigger allowance. I've seen calls for a one off bigger allowance say for an inheritance or house sale etc.

I'm sure the next government will be happy to up the limits

[elephanthunt11]

The Autumn statement WRT ISAs amounted to a huge nothing burger.

All of this speculation and column inches, and for what? The changes are so genuinely pathetic that I had to read it twice to make sure I hadn't missed something.