With the end of the tax year soon approaching, you may be exploring your ISA options in order to make the most of the £20,000 tax-free allowance.
If so, then it pays to be aware of the new changes to ISA rules that were introduced in 2024, so you are fully prepared when managing your finances.
Below is an overview of the most recent ISA changes and what they mean for you as a saver going into 2025.
Previously, savers could only open and pay into one type of ISA per provider, but these rules changed in 2024. New rules mean that you can open ISAs with different providers.
This change offers Cash ISA savers the chance to go after more competitive rates more easily, or pick and mix different accounts, such as opening an Easy Access Cash ISA, a Notice Cash ISA, or a limited access ISA, to name a few. But don’t forget, if you pay into multiple ISAs, you’ll need to keep track of your contributions so you don’t exceed your ISA allowance of £20,000.
The previous rules operated on an ‘all or nothing approach’ to current year ISA transfers – this meant that you had to transfer your entire ISA of that type from the current tax year, or nothing at all.
The changes introduced in 2024 mean that, depending on the offering of your bank, you are able to decide how much you want to transfer, no matter when you made the subscription.
Those with ISAs were previously required to in essence, reapply for ISAs they already hold when there has been a gap of one tax year where no funds have been paid in.
From 6th April 2024, this rule has been removed. This should reduce the potential for confusion and cut down on unnecessary red tape.
This rule only directly impacts Cash ISAs, where the minimum age for opening an account was previously 16 years old.
From the 2024/25 tax year, the 18+ rule mirrors other adult ISAs. 16 and 17-year olds will continue to be able to open and save into a Junior ISA.
For those under the age of 18 that currently have an adult cash ISA, their accounts will not be affected by these new rules until the account holder turns 18.
We have a range of savings accounts at Aldermore to help make your money do more.
To find out about the ISAs available, including our Easy Access ISA, click here.