New ISA Rules for 2024 explained - EVERYTHING YOU NEED TO KNOW

The new ISA rules for 2024 are explained in this video. The tax year ends on Friday, so this everything you need to know.
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Question - What are your thoughts on the topic discussed today. Leave a comment and have your say.
Disclaimer: None of this is meant to be construed as investment advice, it's for entertainment purposes only. The video is accurate as of the posting date but may not be accurate in the future.
TIMESTAMPS
Intro - 0:00
What's changing - 0:48
Three things before Friday - 4:43
They want our ISAs - 6:56
Conclusion - 10:15
About: Peter discusses the new ISA rules for 2024

[@lajollapowell4068]

Have no intention of investing in the UK Isa - since I’m responsible for my self if I don’t have enough money when I retire. The government shouldn’t be trying to dictate how I invest for my future. One rule for them and one rule for us. It’s really quite astonishing and tells you a lot about how bad it really is

[@kennyborland4399]

This highlights the importance of financial education. My dad - who’s 70 and pretty savvy with money - didn’t know you couldn’t have multiple cash ISAs until they brought this new rule in. I didn’t even know what an ISA WAS until I had time to research it during the pandemic! IMO, ISA allowances and personal savings allowances are two big ones that people should know about and understand.

[@lewisholmes9248]

I personally do not think the cash holding rule is particularly concerning. The whole point of a UK ISA is to encourage individuals to invest in UK companies. If individuals could simply put the £5000 in that UK ISA and collect interest, It would essentially serve as an increase of the cash ISA allowance as opposed to a UK ISA allowance. The guidance is quite clearly limited to the UK ISA and does not seek to apply these cash holding rules to ISA’s as a whole

[@DAN97ify]

I completely agree. The whole intent of the UK ISA is to increase capital for UK companies to improve R&D and help them expand. Putting £5000 cash in the UK ISA will completely defeat the objective. I have just read the consultation and it is specifically referring to the new PROPOSED UK ISA not the existing four ISA's which are currently available. I think we need to be careful not to provide inaccurate and hyperbolic statements. Additionally I do not think the ISA allowance is increasing at the start of the new tax year (as stated at 2:00 minutes) because the consultation does not end until June.

[@lewisholmes9248]

@@DAN97ify absolutely, it’s a perfectly reasonable measure

[@judesussman4502]

this was very useful, thank you

[@philsamuel4394]

Great video, as always

[@michaelrowlands9820]

I'm sure the cash holding rule is literally just for the 5k extra UK only investment ISA. Which I don't see an issue with the government not allowing us to hold cash in it. Otherwise people would abuse it and put 5k in, keep as cash then potentially move it over to other none UK stuff in the following tax year by transferring it (if there's a loophole like this it would be exploited for sure). Personally can't see me ever needing it, I don't even use 75% of my current isa limit atm 😅

[@Zero-Investing]

Great video 👌

[@GhostFlashDrew]

great video

[@raykhan8601]

@peterkomolafe - can you re-read page 11? It sounds like the changes to the cash ISA interest are only relating to the £5,000 UK ISA? I take it that all other cash ISAs outside of the UK ISA are unaffected by this suggested change? Happy to be corrected on this?

[@Christoff8188]

Worth remembering to be clear about LISAs; if you're determined to live in an expensive area, then it may not be suitable for you. You won't be getting a home under £450k in London, making the LISA worthless. In Stoke, however, you'd struggle to find a home OVER that threshold, so you'll probably be fine! As for the cash idea... What the hell?!

[@BillY-tw8xc]

You can also use it as a retirement pot. Which I've decided to do!

[@sarahsarah6349]

Also for the lisa we had to pay a fee to take the money out for house purchase 😮

[@williamflinn8606]

Is the British ISA official? Is just seemed a concept with more discussion required where this implies the 5k limit is included in all ISA’s

[@georgechirayus4865]

While not mentioned, could 3.8 / 9 apply only to the Stocks and Shares ISA (eg “purposes of investing”) whilst leaving alone the Cash ISA as intended? Don’t think it’s a backdoor to banning the Cash ISA Really enjoy your presentation style - straight forward, no nonsense. 👍

[@vipul21]

This indicates : Any govt. Scheme is subject to change and your money/ investment is at risk. So do what banks/big companies will do. Invest or park money where minimum govt. Interventions possible. Pension, ISA and govt.bonds are not guaranteed/ safe investments. If I ever invest in govt.scheme just to be tax efficient, then no more than 3 to 5 % of my portfolio.

[@derekrees511]

Does this mean that I can have two stocks and shares ISAs under the new rules. I currently have one with invest engine and would like to open a second with T212 to invest in individual stocks.

[@tonarasi]

Lucid and clear explanation... But it is not correct force us to take risk in stocks and shares if some one is not having risk apetite by forcing them to move away from cash ISA

[@bubblebakingbunny3258]

Each person should do what works for them 😊

[@clarenceishmael9615]

This is great info. Thanks for the heads up! As if investing in UK funds isn't bad enough for my portfolio, they expect me to swallow no interest on cash held! 😂 I'm out as they say on the Den! 🤮

[@soundslight7754]

FTSE100 hasn't gone anywhere for the last 25 years, whereas German index for example has gone up over 8X!! Remind me again why should anyone consider investing in FTSE100 tax free or otherwise?

[@PovilasPanavas]

you have given yourself an argument. I haven't investigated, but it sounds like index and companies in UK is undervalued.

[@bufordmaddogtannen]

​@@PovilasPanavasit has been like this for a while. There is no point in investing in the UK market, unless you are after a way to protect your capital, as it's catatonic on the way down as well.

[@PovilasPanavas]

@@bufordmaddogtannen I'm not denying that it can be not a good investment. But I am saying that with your logic you would invest in FTSE100 once it's expensive. In other words, after it raises you would feel comfortable to invest. That also makes no sense.

[@bufordmaddogtannen]

@@PovilasPanavas no, with my logic I would invest in the DAX or in the S&P500 for better returns, and park the money in the FTSE when the other markets are doing badly.

[@PovilasPanavas]

@@bufordmaddogtannen that still makes no sense. You're doing the same mistake. S&P 500 and world indexes are very high at the moment. Top of the top. I'm not saying it's a bad investment. But I'm saying there's no reason for those companies to be overvalued so much, except that there's so much printed money and new investors, that prices are nuts. And what you said about to put in FTSE when others doing badly. It makes no sense, you wouldn't do it at that time. Or other people would already do and FTSE would have risen quite a bit before you would enter it, thus again, not making any real profit. P.S. I'm not saying any of these moves are wrong, because no one knows the future. I'm just talking about logical thinking and statistics. While it doesn't make sense for S&P 500 companies to be so overvalued, it also doesn't mean it can't keep gong up.

[@petearmstrong2778]

I doubt many of these changes will be available to investors for a few months, if not longer, after the start of the tax year. IT systems, back office processes, HMRC etc all have to agree before start using them. Consultation runs until June 2024 so plenty of twists and turns to come. Not all Cash ISAs accept transfers in just like partial transfers of S&S ISAs will they be tax year aligned, an amount or fund aligned? The UK ISA cash issue - it seems odd to restrict this version of the ISA as the regulator has just enforced payment of interest on cash held in S&S ISA and SIPPs and stopped 'double dipping' by platforms. Either this is an ISA and has the same rules or call it something else like UK Investment with it's own rules.

[@riccardofissore7996]

how to open a lifetime isa? I don’t know how to do. I’d like to nderstand if I can start it and in case I move abroad, I can just have my money back without the government contribution

[@mc-saffb7367]

Moneybox app

[@conversationofmoney]

You’d be caughtwith a penalty if you don’t use it for retirement or a home, so might not be worth it

[@riccardofissore7996]

@@conversationofmoney uhm cos I have a friend who told me he simply got back his money, speaking with him I also understood that the government doesn't give you 1000£ every year, it gives it to you when you retire or buy a house. Anyway in case I'm not sure I think I can still start it and say I'll be using it as a pension, right? Cos I'm 35 I think this year is the last one to start a lifetime ISA so I wanted to make it count

[@bufordmaddogtannen]

From MoneySavingExoert: A Lifetime ISA (LISA) can be opened by anyone aged between 18 and 39. You can use it to save up to £4,000 a year, towards either a first home costing up to £450,000 or for retirement, and the state adds a bonus of up to £1,000 a year on top. Excellent if you like the idea of locking your money away for a few decades, knowing that the penalty will take away more than what the government contributed to it.

[@JasonGardnerUK]

I am absolutely dumbfounded, that you have managed to misread that so badly. I thought to myself could he be right. I pulled up the consultation description and there it is in the first sentence UK ISA introduction. Utter clickbait. Unsubscribed

[@Norfolkpaul]

Have to say not sure. About this 🫣