ISA Changes - HMRC's Latest Update 

I’m usually just a silent watcher, but felt I need to congratulate you on your work recently… from where you started to now, you’ve really helped me with how I look at and manage my money, cheers Damien… from a fellow brummie

As a pensioner, it's great to see videos like yours. I can point my kids towards and help them better plan their futrue, I just wish you were around 25 years ago. Please accept a few pounds to help you keep making quality financial information. We'll done.

I brought my cup a tea to watch this during my Saturday day morning

Great summary Damien! Learnt SO much since following your channel, and have completely changed my approach to my finances as a result! Thanks for all the effort!

great to see you grow, legend

Great shout on creating another ISA for more speculative investments. That's been on my mind for a while and I wondered how other people went about it. Will check the links in your bio. Cheers

Thanks for yet another timely update, you're seriously grafting to get the newest content out first 👏🏻 Multiple ISA's confirmed is what im here for. Excited to switch away from Fundsmith and apply my learning on a new platform whilst still being able to trickle a few quid Terrys way if I want to.

Another great video, clear and concise putting us all in the picture. 👏🏾 As usual the government tinkering without addressing the need to update the actual isa allowance! Should be 30k by now in my view.

Excellent video, it's brilliant to finally have some info on the multiple ISAs in the same year.

Thanks for the update Damien, love your channel. For me, partial transfers in the current tax year will be really useful as I have a lump sum currently in a regular savings bank account (I already maxed out this year's ISA allowance). which I'm going to stick in a cash ISA next year. Then I'm going to make partial transfers from that into my stocks and shares ISA in order to take advantage of dollar cost averaging. Now whether this is better than just sticking the whole lot straight into the stocks and shares ISA is different debate 😊

Thank you, I was waiting for an isa update from you...thanks so much

I think you videos are improving all the time. well done. I watched a vintage video, where you made references to trainers - which was odd.:) unless you were getting sponsorship. The issue with fractional shares is tracking the relative returns on specific shares if an individual was to hold multiple isa s and was also self trading on multiple fractional shares outside the isa frame work. ie{ I get this fraction from my isa investment, this fraction from a platform and this fraction as a swaps on a derivative for example. I then end up with a share-but made up from three different investment sources where different tax patterns apply.

Nice work as always. I have a comment regarding different providers,,when getting a free share. If you max out your isa you get a free share in a GA, but if you haven’t you get it in your ISA. Therefore, if investing with different isa providers in the same tax year and they only consider the deposits it may result in an overpayment due to the free share. Many people may end up breaking the 20K rule by accident, by not counting the value of the free share.

This British ISA seems to have clouded the fact that what should have happened is a raising of the ISA limits which should be £30k by now. The government seems against investment particularly when you consider what they have done with capital gains tax.

Really helpful, Damo, thanks. I've of the same mind as you. Probably going to keep the bulk of my investing with one platform and take the opportunity to dabble in bits and pieces with other platforms. This flexibility is long overdue in my opinion.

Thanks for keeping us in the loop with these changes Damo 👍

Keep up the good work and keep us updated. We appreciate it 😊

Cheers for this video I would never have known about the split ISA thing if not for this. Super helpful

Excellent work Damien. Thanks for sharing. So much useful info here. Take care buddy.

Thanks for the update, Damo my man. 😊

I asked my building society (a proper one not the N name) about multiple subscriptions the other day and they said part of the issue in allowing them was actually that their systems are hard coded with controls to prevent opening multiple ISAs and to only allow full ISA transfers. So actually it seems to be a "computer says no" issue where companies are having to upgrade to allow these changes.

Well done, carry on !!

The best financial RU-vidr out there!

Great content, some great changes and looking forward to having some flex 👍🏻

Mate! It’s like you read my mind!! About an hour ago, I thought “I hope Damien does a video on the new ISA rules soon” 😂

Morning Damien. Thanks for the video.

I called HMRC yesterday for clarification if I’m allowed to open and fund multiple S&S ISA starting April 2024 as I’m planning to open new T212 ISA on top of my current HSBC S&S ISA…but I was only told to just ask my provider as he wasn’t sure as well😢 waited for over 1hr on queue only to receive that answer🤦🏽‍♀️

Great work getting this out so quickly! Few other financial influencers include details such as this!

Damian, thanks for doing our homework for us and providing the update. I am guilty of being a Vanguard die-hard at the moment, but I have been seriously considering changing in 2024-25 to reduce fees and have more choices. I may split my allowance between two, Vanguard and another.. Your content is always superb 😊

Great videos! As a dyslexic useless with reading and writing your videos are my go too for me to understand what’s going on. Cheers.

Brilliant insights as usual, thanks mate

Hello. Thanks very much for your videos, Damien. I knew nothing about the world of investments prior to watching your videos. Excited to get started, but still so many questions. If I could be so bold to ask you...as a time limit looming...If I was able to put £4000 into a Lisa before 5th of April 2024, would it still be in time to get the £1000 bonus? x

Great work on these recent videos, they're incredibly helpful! Quick question, is there a tax burden on withdrawing any amount from a Stocks and Shares ISA? I'm currently investing in a Vanguard Index fund for the long term and would hate to get 20-30 years down the line and find out I'll be taxed by withdrawing from what will hopefully be a big pot!

Thank you for the video

Thank you , ❤

So if fractional shares are stopped will we not be able to get VWRL any more? That would be annoying

Glad to hear a decently summarized update on these changes! Hopefully they dont turn into something impossible to deliver with Hunt simply expecting not having to (when he is unlikely to get re-elected). I mean digitalising the ISA system,depending on what it involves, can be costly, prone to issues and simply the next governments problem. Same goes for the UK ISA which Im still trying to figure out if it can do any "better" than the LISA since it looks just as niche.

Great video… thanks 👍🏻

Another great video, as always. Thank you for bring up the fractional shares topic, I was not aware of this.

The ‘accidently’ throwing more than 20k into ISA seems a minor issue but the punishments are also insane.

Your a legend mate 👏 keep it up thank you 👍

Hi Damien, are you able to shed some light on the rules around flexible ISAs? My understanding is you can withdraw from a flexible cash ISA and pay into a flexible S&S ISA, as long as it’s within the current year’s allowance (i.e. no more than £20k). Several websites such as MSE seem to ratify this, but looks like the ISA regulations themselves are being amended to remove this clause, which makes it even more confusing? Cheers.

gd job i watched this vid, i was just about to start putting money into 2 Stock ISA's, I shall be sortin that.

4:50 - I don't see "This change is not mandatory" qualifications as a way for the government to avoid having to implement the new rules properly themselves. In the past, it was against the law to pay into multiple ISAs of the same type in a single tax year (for example). The new rules remove these laws. That doesn't mean providers should be required to provide these services, just as patisseries wouldn't be forced to sell pot brownies if cannabis were legalised.

Damo; a man of the people.

Amazing! I’ve been waiting for someone to clarify the recent ISA changes, namely fractional shares in ETFs…of course it would be you, ha! Nice one Damien 👍!

The enhancements to ISA's mean lots of IT changes across many companies the more compicated the harder to make and more it costs. Also I get the flexibility to have multiple accounts in a given year, however one major incentive for staying with one platform for ISA's and `Pensions is the reduce management fee when over a certain amount.

Hi Damien, are you saying that we would be allowed to make a partial transfer from a cash ISA with one provider to another. If say someone had more in a current cash ISA than the FSCS 85k limit, they could move some of it to another bank to better protect their money for example? That's not mandatory though?

Sorry new to ISA's. In the lastvtax year i have a mzed out cash ISA. In the new year can i keep that ISA going and then start in the new tax year 6th April 24 another 20k ISA to sit alongside my existing one and so on and so forth. Also my current ISA will say return £500 so I'll have £20.5k does that £500 return to me so i can use that plus £19.5k for the newt ISA? Any replies greatly appreciated. Great video btw.

Great video, thank you

Hi Damian! really enjoy watching your videos.. Do you have a list of junior ISAs providers and your comments of those? Thanks

A very good reason why you might want to do a partial transfer is if your Stocks and Shares ISA has exceeded the £85000 compensation limit. My first (which started out as a PEP) now has. Obviously you won't get compensation for bad investments, but from what I can make out, if your platform goes bust and it was then found it was spending your money on private jets rather than the Apple shares you though you had bought, you will, but like other savings accounts only up to £85K.

In the new tax year can you pay into then pay into a Help to Buy ISA and a Cash ISA?

2:28 isnt this the same issue with using a Lifetime ISA and a S&S ISA atm? I have to make sure I put £4k into my LISA with HL, and £16k in my Trading212...

Any ISA sign ups/switches on the go at the moment hacent gound any in my own research.

Here from 2k subscribers 🥳

Ey up Damo! I always find HMRC super tough to deal with! Customer service levels that just wouldn’t wash anywhere else!

Re. paying into no more than one ISA of the same type in a financial year, this was something I only discovered a few weeks ago, after paying into two this year. Turns out my adviser was very friendly but didn't seem to believe it was a restriction that exusted or that i needed to be concerned about (i'm paying in well below the 20k total limit). The change to focus only on the total amount paid into ISAs is a welcome and sensible change, as you say, in the interests of consumers by incentivising providers to compete with each other and offer better products and services

Fantastic video as always

Awesome video. Any plans to cover the Innovative Finance ISA? It's been around for a few years but I've never actually (knowingly) met someone who has one

Brit ISA to me just seems another tax efficient way to increase wealth for the rich, can't imagine many people reach the 20k limit each year. If they want more investment in the UK businesses that will come from the confidence people have in the government & their own actions in governing properly.

Hi Damien, is there anywhere i can get clarity on whether i can add the 2024 allowance into the isa i filled this year or do i have to start a new one regardless ?

Any thoughts on whether the Help to Buy Isa threshold for house price will increase from the current £250,000? cheers

Great vids - Was there any push back on The further lowering of capital gains tax free allowance from £12,000 to £6k, down to £3,000?? Just seems unfairly low

Good news about allowing pay-ins to multiple ISAs in a tax year. I wonder how it will change the free cash for paying in promos, I've never been able to take advantage of those because I'm always paying into an ISA.

Excellent stuff

I'm no computer expert or statistician used to dealing with huge volumes, but I would imagine that digitally cross referencing NI numbers to identify multiple ISA accounts / multiple providers attached to the same person, would be a pretty simple computer search for the HMRC. To me, that suggests the risk from accidentally or deliberately over-subscribing ISA allowances are very real and should be avoided. Great video Damien as always, and genuinely thought provoking and useful content. Good work young man!

But the allowance is still £20,000?

You make an excellent point re fractional shares and buying the likes of VWRL - isn’t that just then you buying a very small fraction of thousands of different companies? So HMRC, looking forward to further answers in the summer (hopefully) - appreciate all your research Damo, keep smashing it mate 👊

Is it a good idea to use an ISA account for the more speculative investments esp. if you also have a GIA? Losses in an ISA are not deductable from Capital Gains?

Loving ya work Damo ❤

Any idea how the new rules regarding paying into 2 different isas will work with a vanguard isa? Tge vanguard isa is a flexible isa. I could withdraw 50k out of my vanguard isa then replace the 50k back in the same tax year, and it doesn't count towards that same year's 20k isa allowance. I'm wondering from April, could I take out 10k from my vanguard isa then put it back into the vanguard isa in the same tax year but use my 20k isa allowance in trading212, so in effect being able to add 30k into isas in the new tax year?

Hi so just to clarify Are yu saying we can split the 20k allowance across 2 different providers?

I've got a question. If I put money in a LISA, and put money in my ISA, in the same tax year, is that allowed?

Process might be manual! No chance, a quick duplicate check on you ni number by subscription year will generate a list in seconds!

The ISA rules and policing policy is a mess. It's not clear to new ISA subscribers, especially those who are young who haven't used these before. It needs a right sorting out so it's made much much easier for those who are less fiancially savvy.

Damo... do a video on Jezza's talk of doing a consultation on a pension for life. That would be a game changer for investors all over the country. Sick of having my pension stuck in a shit fund and getting below par gains.

One thing I’m not clear on with S&S ISAs is about the cover over £85k. If you are saving for the long term, I would expect lots of people to hold well over £85k in one ISA. Is this taking a bit risk or if the firm went bust would the money be treated differently than a normal savings account?

Thanks

So I can pay up to £20,000 into a trading212 isa and a vanguard isa from the new tax year? So £10k for each isa? Just want to make sure I understand this before I start paying into both from April.

Would love to see the full phone call with HMRC!

How long did you have to wait on hold for the HMRC call? 😅

Love your updates

Can’t get my head around how sassy the phone rep was re contacting the press office.

My broker already sold my fractional shares and won’t allow me to buy any more. 😐

The fractional share caveat is an interesting one. If they (HMRC) have a very dim view on them and don’t believe they should be allowed in an ISA account, why can we buy fractional shares within our ISA on our platforms? Seems to me if the platform allows it, it’s fair game.

In 1986 we were promised the government intended to abolish the 0.5% Stamp Duty tax on purchases of UK shares. Still waiting.

Nice vid man! So has it been confirmed if we can pay into 2 different stocks and shares ISAs with 2 different providers? If fractional shares are not allowed how does T212 does it?

Really enjoy watching your Videos! :) I have one question, lets say if as a new comer i invest in a Mutual Fund in March, 2024, is it still ok to open a new Mutual fund account in April 2024 (after the 6th)?

Re Digitalisation, looking at the horror of the Post Office scandal where inaccuracies in the software caused terrible distress, I'm going to avoid starting multi ISA's for at least a year in case there are similar glitches and people are incorrectly charged of breaking ISA rules and penalised and then having to wait a long time for being refunded.

Hi Damon I have filled up my ISA’s for 2 years but taking a working holiday visa is it ok to not contribute to it for a year or two?

❤️ I can’t even max out 20k a year tbh 😂

03:44 you mentioned junior ISAs and LISAs are exempt. So they don't count towards the 20k limit as it stands?

The simplest option would be for the fractional shares to be held in a holding company that you then own shares in. That way you can own a single full share that profits from the growth in fractional shares of thousands of companies.

Fractional shares - I think it needs regulation and limited to 1/4 only. People should be forced into broader etf / funds to limit their damage. fractionals are for people with less money to invest but want the benefits like warran buffet. I’m ok with funds and etf fractional but not individual stock.

Hi , I am still keeping 20 shares of Tesla in the ISA account. Could u advise How to handle it in 2024?

When you buy into a global etf, surely you’re buying a share in the fund, not all the fractional shares the fund holds, at least, that’s what I thought…

What did you ask that guy on the phone to warrant his response? 😲

Do you no about flexible ISAs?????

‘Unfortunately your call has now ended”… grumpy much?