ISA changes for the 2024/25 tax year

There are some changes to how ISAs work in the 2024/25 tax year that you need to be aware of. Here’s more info.

The Autumn Statement in 2023 included some changes to ISA rules and how they work in the 2024/25 tax year.

The big one is that from 6th April 2024, you can pay into more than one of the same ISA type (e.g. Cash ISA and Stocks & Shares ISA) in a single tax year. This gives you more flexibility over how you choose to build your wealth and earn the best savings rates.

There’s also been a change to partial transfers. From 6th April 2024 you can now transfer part of an ISA you’ve paid into in the current tax year (as well as a previous tax year). Before this, you had to transfer the full amount. A transfer could be from one ISA provider to another (if they accept these), or through features like our Move Money tool between your Moneybox ISAs.

Here’s more information – including the allowances for each ISA in the 2024/25 tax year, and any other changes to be aware of.

 

Cash ISA

The annual Cash ISA allowance will remain unchanged at £20,000 for the 2024/25 tax year. This is shared with any other ISAs you might have. 

The Moneybox Cash ISA gives you 5.16%* AER (variable) on your savings. So if you’re earning less elsewhere, it might be worth looking into transferring your Cash ISA to Moneybox. 

It takes a few minutes to request your transfer, and you can do it entirely in-app. Just go to Settings > Transfer in an existing ISA to get started. 

*New customer rate as of 26/03/2024. 5.16% AER (variable) includes a bonus rate of 0.91%. A lower rate of 0.75% AER (variable) applies if account conditions aren’t met. Interest is accrued daily and paid into your account yearly on the date you opened your Cash ISA. The rate is variable and we’ll inform you if it changes.

 

Request transfer

 

Stocks & Shares ISA

The annual Stocks & Shares ISA allowance remains unchanged at £20,000. Again, this is shared with any other ISAs you might have. 

One thing to be aware of for the 2024/25 tax year is that the capital gains allowance and the dividend allowance will both be cut in half to £3,000 and £500 respectively. If all of your investments are held in a Stocks & Shares ISA – this won’t affect you.

But if you have investments outside of a Stocks & Shares ISA – like in a General Investment Account – and you have some ISA allowance left for this tax year, you might want to consider moving that money into a Stocks & Shares ISA to make the most of your annual ISA allowance, and to avoid the possibility of paying tax on your capital gains or dividends. 

This change will make a Stocks & Shares ISA even more attractive to investors in future tax years as it increases the possibility of having to pay tax on gains or dividends earned outside of a tax wrapper.

If you have a Stocks & Shares ISA with another provider as well as Moneybox, it might be an idea to transfer your investments into one place to make it easier to keep track of them. Doing this with Moneybox takes a few minutes. Plus, you’ll be able to see more of your investments in one place – the award-winning Moneybox app.

 

Request transfer

 

If you haven’t already got a Stocks & Shares ISA with Moneybox, open one today  to see how we make investing easy, whether you’re starting from scratch or a seasoned hand. You’ll also need to open a Moneybox Stocks & Shares ISA first before starting a transfer. 

All investing should be long term (min. 5 years). The value of your investments can go up and down, and you may get back less than you invest.

 

Open a Stocks & Shares ISA

 

Lifetime ISA

The annual Lifetime ISA allowance remains unchanged at £4,000. This is part of your £20,000 annual ISA allowance.

This means that there’s still a free £1,000 bonus from the government up for grabs each year. Remember, you get a 25% bonus from the government on everything you deposit into a Lifetime ISA during the tax year.

We’ve been campaigning to future-proof the Lifetime ISA for aspiring homeowners, and are hoping to see changes announced in the near future.

A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.