ISAs can be one of the most effective vessels to help you maximise your savings. And with HMRC’s latest changes, they just got even better. Let’s dive into 5 new rules and how they can benefit you.
Subscription flexibility
Gone are the days of being tied to one type of ISA per year. Now, you can mix and match, subscribing to multiple ISAs within the £20,000 limit.
Buying your first home
For anyone planning to buy their first home with a LISA? that purchase must now be backed by a loan secured by a legal mortgage—and not from anyone related to them.
Cash ISAs for young savers
ISA rules have shifted for 16 and 17 year olds. You can’t start a new cash ISA, but if you’ve already got one, you’re good to keep contributing. Just remember, it’s one cash ISA per tax year until April 5, 2026.
Handling oversubscriptions
Overdid it with your ISA contributions? Your ISA manager can help you remove the excess for the current tax year. If it’s a past year’s issue, HMRC will be in touch.
Transferring ISAs
ISA managers now have the option to allow partial transfers of current year subscriptions. If they do, they’ll spell it out in the account’s terms. No changes for LISA and JISA transfers, though—they’re staying the same.