Hargreaves Lansdown and AJ Bell have reported to Investment Week a significant uptick in activity among their ISA clients.
HL noted a 39.6% increase in the number of investors fully utilizing their Stocks & Shares ISAs in the current tax year compared to the last one.
Similarly, AJ Bell revealed that in September alone, ISA subscriptions surged by 47%, with the number of Bed and ISA transactions doubling compared to September 2023.
This trend has also been observed by Bestinvest and interactive investor.
Evelyn Partners’ platform reported a 156% jump in ISA contributions last month compared to the same period last year. Additionally, contributions for the first 11 days of October surpassed the total for the entire month of 2023 by 106%.
Bestinvest attributed this surge to concerns over Chancellor Rachel Reeves’ rumored plans to increase capital gains tax (CGT), stating that these “fears” are driving demand for ISAs, which offer tax-free investments of up to £20,000 annually.
Typically, such spikes in ISA activity occur at the end of the tax year as investors rush to use their allowances before they expire. However, Bestinvest explained that speculation about potential CGT hikes in the upcoming Budget has prompted many to move their savings into ISAs ahead of any possible changes.
