Changes to ISA rules in 2024
In the 2023 Autumn statement the chancellor announced changes to the ISA rules that have come into effect from 6 April 2024. The below summaries the changes that are relevant to cash ISA’s.
For details of all the changes please check guidance on the gov.uk website.
Minimum age increased
The minimum age to open a cash ISA has increased from 16 to 18 years old from the 2024/25 tax year. At UTB the minimum age to open account is already 18, so we have no change to make.
No need to reapply for existing ISA each year
The need for you to reapply for ISA’s that you already hold where no funds have been paid in has been removed.
Allow subscriptions to multiple ISAs of the same type
Previously savers could only open one type of ISA per provider. From April 2024, you’ll be able to open multiple ISAs of the same type with different providers. This change is optional so not all providers will be allowing you to do this.
We will not be allowing multiple cash ISA’s to be opened and will continue to allow one cash ISA to be opened per customer each tax year.
Partial transfers
HMRC has removed the restriction on partial transfers from the current tax year. This means you can transfer part of your account balance from one ISA provider to another and keep some funds with your existing provider. This change is optional so not all providers will be allowing you to do this.
We will not allow partial transfers in of current tax year funds and will continue to request that all current tax year funds must be transferred in full.
For transfers out we will allow partial transfers of current tax year subscription as long as the funds that remain with us meet the minimum balance requirement of the account.