How do the new ISA rules affect you?

Individual Savings Accounts (ISAs) are a tax-free way to save, meaning you don't pay UK income tax or capital gains tax on the returns you make. There are different types – cash ISAs, stocks and shares ISAs, innovative finance ISAs and Lifetime ISAs – and you can add up to a total of £20,000 into your ISAs each tax year.

In the 2024/25 tax year, the rules for ISAs changed. Here we’ll explore how the new rules could affect you.

When did the ISA rules change?

The rules changed on 6 April 2024.

Four key changes for ISAs

Pay into more than one ISA in a year
If you’re 18 or over, you can now open and pay into more than one ISA of the same type (except the Lifetime ISA) within the same tax year. Before, you could only put money into one of each type of ISA each tax year.
No need to reapply each year
If you have an existing ISA that you haven’t paid into in the previous tax year, you won’t need to make a declaration to pay money in again.
Transfer all or just part of your ISA
If you’re 18 or over, you can now transfer part of your ISA between providers, regardless of when the money was paid in.
Higher minimum age for cash ISAs
The minimum age for opening a cash ISA has increased from 16 to 18. This brings cash ISAs in line with the minimum age for opening other types of adult ISA.

The higher minimum age for cash ISAs is a transitional change and ISA providers have until 6 April 2026 to comply with the new rules. We’ve already made this change, so you’ll need to be 18 or over to apply for our Direct ISA.

What hasn’t changed?

Under 18s and parents can still pay into a Junior ISA

You can still open a Junior ISA if you’re 16 or 17, or have parental responsibility for a child under 18. The amount you can save into a Junior ISA is £9,000 each tax year. Children can take control of their Junior ISA at age 16.

Age 16 or 17 and already have an adult ISA?

If you’re 16 or 17 and had an adult ISA before 6 April 2024, your ISA is not affected by the new rules until you reach 18.

This means you’ll still only be able to pay into one cash ISA in each tax year. And if you want to transfer money you’ve paid in during the current tax year, you’ll need to transfer all of it.

The annual ISA allowance

There’s still a cap on the amount you can save in your ISAs each year. The annual ISA allowance is £20,000 each tax year. You can open multiple ISAs of the same or different types in the same tax year, but your overall allowance can’t go over this limit.

Tax-free, efficient savings

ISAs shield your money from income tax, tax on dividends and capital gains tax. They offer tax-efficient savings for every age group, so you can save towards your future and maximise your returns.

To find out more about the latest ISA rules, visit gov.uk/individual-savings-accounts