HM Treasury: Consultation on UK ISA
06 March 2024
The government is now looking to introduce the UK ISA. This will have a new ISA allowance of £5,000 in addition to the existing ISA allowance, and will provide a new tax-free savings opportunity for peopleto invest in the UK,
Background
1.1 An Individual Savings Account (ISA) is a tax advantaged savings
account, where income and gains arising from within the account are
not subject to UK income tax or capital gains tax. There are four types of
adult ISAs: Cash ISA, Stocks and Shares ISA, Innovative Finance ISA, and
Lifetime ISA and individuals can subscribe up to £20,000 across all ISAs
for the year 2024/25. The Lifetime ISA has its own subscription limit of
£4,000 per year which forms part of the overall £20,000 limit.
1.2 ISAs have become popular savings products that provide an
incentive for individuals to save and invest, as appropriate for their
circumstances. In 2021/22 over 11 million ISAs were subscribed to. This is
why, at Autumn Statement 2023, the government made changes to
simplify them and provide more choice to savers, making it easier for
people to choose the best ISAs for their needs and move money between
them.
1.3 The government is now looking to introduce the UK ISA. This will
have a new ISA allowance of £5,000 in addition to the existing ISA
allowance, and will provide a new tax-free savings opportunity for people
to invest in the UK, sitting alongside a wider package of measures.
1.4 The UK ISA will provide individual investors with an additional
opportunity to save whilst supporting investment in the UK and
benefiting from its growth. Alongside this, the UK ISA will also build on
the government’s Mansion House and Autumn Statement 2023
measures to reform the pensions market to unlock investment into high
growth sectors and improve the competitiveness of the UK as a listing
destination.
1.5 This document sets out the objectives for the new ISA allowance,
as well as options for defining and implementing it....
more at HM Treasury
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