On 15 May 2024, HMRC published its 12th Tax-Free Savings Newsletter.
The contents provide detail to something we covered in our Autumn Budget roundup that affects us personally. Therefore, ICB wants to follow this through to a natural legislative and practical conclusion.
Autumn Statement 2023 (points 5.38, 5.39 and 5.46) confirmed that the annual allowance remains frozen for tax year 2024/25 at £20,000 (with freezes applying to the thresholds for Junior Individual Savings Account (JISA), Lifetime Individual Savings Account (LISA) and Child Trust Funds (CTFs)). However, there are two key changes from 06 April 2024:
- Subject to some restrictions, investors can pay into multiple ISAs in each tax year (subject to the £20,000 tax year maximum) – see point 1.1 in the May 2024 Newsletter
- Partial transfers of current tax year ISA funds are allowable, unlike the pre 06 April 2024 regime where funds could only be transferred if they related to a previous tax year – see point 1.5 the May 2024 Newsletter
The Individual Savings Account (Amendment) Regulations 2024 legislated for these changes and, perhaps, the Explanatory Memorandum is the better place to look for a full explanation of the changes.
For Bookkeepers
ISA flexibility from 06 April 2024 is welcome news and does appear to update a previously unnecessarily rigid structure.
However, any tax-free ISA arrangement is a technical issue and bookkeepers should not attempt to offer any advice, the above is for information only.
