Three key changes to stocks and shares ISAs
IG’s Portfolio Manager, Martin Harris, sat down with IGTV’s Angeline Ong to run through the three key changes to ISAs for 2024/25 and which IG products are available.
(AI Video Summary)
British ISA proposed
Two weeks ago, Chancellor Jeremy Hunt proposed the introduction of a new type of ISA, called the "British ISA," which would allow investors to put an extra £5,000 into UK assets on top of the current limit of £20,000 only into UK assets. This could be good news for those who invest in stocks and shares ISAs, as it could mean higher contribution limits, the ability to invest in multiple ISAs, and the option to transfer part of their portfolio to another provider. However, it's important to note that the overall cap of £20,000 would still apply.
Aim of the British ISA
The aim of the British ISA is to improve the UK's capital markets and boost UK stocks and shares. While this is a noble goal, it may not have a significant impact, as investors tend to follow the highest returns. Additionally, only 15% of stocks and shares ISA holders reach the current limit of £20,000 each year. Moreover, last year, £14 billion was taken out of retail investments and put into other markets, which means the impact of tastylive may only slightly slow down this trend.
Types of ISAs on offer through IG
If you're interested in stocks and shares ISAs, IG offers two options. They have self-directed accounts, which allow you to manage your own portfolio, and the IG Smart Portfolio, where an investment manager takes care of your ISA. The IG Smart Portfolio, created by BlackRock, uses a quick risk questionnaire to help match investors with a suitable portfolio based on their risk profile. Additionally, all of IG's ISAs are flexible, meaning you can withdraw and redeposit funds within the same tax year without affecting your allowance.
In conclusion, there may be changes coming to stocks and shares ISAs with the potential launch of the British ISA. However, it's uncertain how much of an impact this new ISA will have on the UK capital markets. If you're interested in investing in stocks and shares ISAs, IG offers different options to suit your needs and preferences.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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