Five (newish) ISA rules you need to know about

3 minute read

Individual Savings Accounts (ISAs) can be one of the most effective vehicles to help you maximise your savings. In recent years a series of changes have been made to the rules that apply to ISAs (most of which have been for the better). Here’s a look at five of these relatively new rules and how they can benefit you, but first the most recent change, one where the jury is still out…

Diagram of ISA rules changes

And five less recent but still important changes

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 Lifetime ISA (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 cannot start a new cash ISA, but if you already have one, you can keep contributing.

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 an issue from a previous year, HMRC will be in touch.

Transferring ISAs
ISA managers now have the option to allow partial transfers of current year subscriptions. If they do, it will be spelt out in the terms of the account. No changes for LISA and Junior ISA (JISA) transfers, though—they remain the same.

Keep in mind…

LISA and JISA subscriptions still have their one-per-year cap, and under-18s have special rules too.

Another change in the offing?

In autumn 2025, the government announced it will consult on introducing a new, first-time buyer only product to replace the LISA. For now, it will still be possible to open a LISA until the new product becomes available. Account holders will also be able to continue to save into their LISA in line with the existing rules indefinitely.

And finally

If you are feeling a bit overwhelmed or just have some questions, do not worry, your Quilter Cheviot Financial Planner is just a call away to help. Happy saving!

Quilter Cheviot

Senator House 85 Queen Victoria Street London EC4V 4AB +44 (0)207 150 4000

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