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A mixed Budget for Isa investors

The Isa allowance will remain frozen – but it could have been worse
A mixed Budget for Isa investorsPublished on November 14, 2024

With both capital gains tax and inheritance tax in the firing line, individual savings accounts (Isas) didn't get much attention in the aftermath of last month’s Budget. But there were tidbits of news about those too.

Isa allowances were confirmed until April 2030. The adult Isa allowance will remain at £20,000, of which up to £4,000 can be in a Lifetime Isa, and the Junior Isa allowance will stay at £9,000.

Considering that this was anticipated to be a heavily tax-raising Budget, this was a win for investors, who will still be able to invest significant sums every year without them being subject to capital gains, dividend or income tax. As Jason Hollands, managing director of Evelyn Partners, says, it could have been much worse: “Some policy wonks had been calling for the introduction of a lifetime cap on Isas, something Rachel Reeves herself had advocated in the past. There were also rumours of a possible cut to the annual allowance.”

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