‘British ISA’ announced in 2024 Spring Budget – what we know so far (2024)

FAQs

‘British ISA’ announced in 2024 Spring Budget – what we know so far? ›

UK ISA. The government has proposed the introduction of an additional individual savings account (ISA), with individuals able to invest £5,000 per year tax-free in UK-based assets, in addition to the £20,000 allowance for existing ISAs.

1.1 Increase the age for opening cash ISAs from 16 to 18 years old and over. From 6 April 2024 it will not be possible for anyone aged 17 and under to subscribe to more than one cash ISA . This is a mandatory change with transitional arrangements.

Tax and spending announcements. The Chancellor announced policies including on: National Insurance – the main rate of Class 1 employee NICs will be cut from 10% to 8% from April 2024; the main rate of Class 4 employee NICs will be cut from 8% to 6% from April 2024.

The new UK ISA will have an additional £5,000 allowance, which is on top of the existing £20,000 allowance across other types of ISAs. The goal is to encourage individuals to invest in UK assets.

Central government's total expenditure was £107.4 billion in July 2024, £3.5 billion more than in July 2023. Of this overall £3.5 billion increase in spending: net social benefits paid by central government increased by £2.7 billion to £25.9 billion, largely because of inflation-linked benefits uprating.

However, as of April 2024, you can open and contribute to multiple ISAs of the same type without affecting your overall allowance. It's important to remember that if you don't use your full ISA allowance in a tax year, you can't carry it over to the next one.

"For most people with fixed rate cash ISAs, I can't promise everyone, but certainly enough of you very close to the end of it should be ditching them, paying the penalty, and putting them [the money] in somewhere that pays more at the moment."

Each April your local government pension is increased to ensure that it maintains its spending power in line with the rise in the cost of living. The government has confirmed that local government pensions will rise by 6.7% from 8 April 2024.

BB2024-01: DIMENSIONS OF THE 2024 NATIONAL GOVERNMENT BUDGET (AS ENACTED UNDER RA NO. 11975) The 2024 GAA authorizes an expenditure program amounting to P5,767.6 billion which is 9.5% higher than last year's spending level, and is equivalent to 21.8% of the projected GDP this year.

SACRAMENTO – Governor Gavin Newsom today signed 2024 state budget legislation that brings stability to state finances while preserving key investments in safety net programs, education, addressing homelessness, mental health care reform, and more.

What is the ISA allowance for 2024 to 2025? ›

At a glance: The ISA allowance for 2024/25 is £20,000, unchanged from the last tax year. This means you can pay £20,000 into ISAs from 6 of April 2024 to the 5 of April 2025.

The UK government has scrapped plans for a 'British ISA' over concerns that it would “complicate” the investment market for individuals. The planned British ISA would have channelled savers' cash into London-listed stocks, in a bid to boost both savings and the economy.

You can open as many ISAs of the same type as you like

But you couldn't save into more than one ISA of the same type. Under the new rules, you can pay into multiple versions of the same type of ISA, up to your annual ISA allowance of £20,000 in each tax year.

Expenditure (excluding debt repayment) in 2024-25 is estimated to be Rs 6,96,632 crore, an increase of 14% over the revised estimates of 2023-24. In addition, debt of Rs 39,806 crore will be repaid by the state.

Financial support worth a total of £1,350 was offered to the most vulnerable households during the cost of living crisis. Some eight million families received a cost of living payment of £900 split into three instalments and the final instalment was paid between February 6, 2024 and February 22, 2024.

A hard-working family with two earners on the average salary of £35,400 each will be better off by £1,826. An average full-time nurse on £38,900 will be better off by £1,053. A senior nurse with five years experience on £42,618 will be better off by £1,202.

From April 2024, the minimum age to open an adult cash ISA is rising from 16 to 18 years old. This mirrors the age requirement for other ISAs, like stocks and shares ISAs. There's a transitional arrangement that will stay in place until 5 April 2026.

For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600 for 2024, an increase of $750 from 2023; and for heads of households, the standard deduction will be $21,900 for tax year 2024, an increase of $1,100 from the amount for tax year 2023.

Since the start of the 2024/25 tax year, there is no limit on the number of ISAs that you can open with different providers (apart from lifetime ISAs).

Yes, you can add money to your Cash ISA every year, as long as the total amount does not exceed the ISA cap for 2024/25 of £20,000. There is no cash ISA limit. If you contribute to more than one type of ISA during the same tax year, this total amount of £20,000 must be split and shared across the ISA accounts.