Everything you need to know about the new ISA rules

In August last year the government announced new Individual Savings Account (ISA) rules with the hope of making ISAs more flexible for customers. So, you’re thinking about opening a new ISA for the 2024/25 tax year but aren’t sure what the new rules are. Well, don’t you worry; we’re here to help you wade through the nitty-gritty so you’re up to date and ready to go.

This year marks the 25^th anniversary of the ISA, and we’re excited to be celebrating this milestone. Over the years, ISAs have become a savings staple for many people because they give a great tax-free option to save, and we’ve been helping our customers make the most of their ISAs ever since they launched back in 1999.

There are always tweaks here and there for ISAs each tax year, and this year’s no different. The limit is still staying at £20,000, but there are other changes afoot that are aiming to make ISAs even more flexible than before.

It’s important to note that some of the changes aren’t compulsory, but we’re working to implement them as soon as possible. We’ll keep you updated, so keep checking with us to make sure you don’t miss anything!

• New age limit: it’s now mandatory that you need to be at least 18 to open an adult ISA. Previously, some providers allowed Cash ISAs to be opened by those aged 16 or above. But now, anyone 17 or below will need to open a Junior ISA instead.
  • This change has been implemented for Kent Reliance

• Multiple cash ISAs: in the past, savers were only allowed to have one cash ISA at a time. But providers can now choose to allow customers to hold multiple cash ISAs across providers as long as they stick within the £20,000 limit.
• This is not a mandatory change and so we’re in the process of looking into how we can implement this change for our customers, so keep an eye out on our website for updates.

• Partial transfers: one of the optional new rules that we’ll be bringing in soon is to allow savers to make a partial transfer of the current tax year allowance to another provider—something that was previously not allowed. This means that you can move some of your savings to a different ISA provider without having to completely close your other ISA.

• This is not a mandatory change and so we’re in the process of looking into how we can implement this change for our customers, so keep an eye out on our website for updates.

• There is no need to reapply for a dormant ISA: if you want to pay into an existing ISA that you didn’t pay into during the previous tax year, HMRC no longer needs you to make a new application to start saving in this ISA in the new tax year.

• This is not a mandatory change and so we’re in the process of looking into how we can implement this change for our customers, so keep an eye out on our website for updates.

As ever, ISAs are an excellent option and can really help boost the money you save by keeping your interest tax-free.

With interest rates remaining quite high, there’s a possibility that you might exceed your Personal Savings Allowance, so an ISA could help you make the most of your savings this tax year.

If you’re thinking about saving with an ISA, view our latest range of Cash ISA’S or why not pop into one of our branches to talk about your options.

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