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The number of people holding Isa pots valued at £1 million or more has grown by over 50 per cent in a single year, reaching approximately 7,730.
Information disclosed by HM Revenue and Customs (HMRC) following a freedom of information request by financial app Plum revealed the figures, which were rounded to the nearest 10, reflecting total holdings as of 5 April 2024.
This marks a 52 per cent jump—equivalent to 2,660 new Isa millionaires—up from the 5,070 people HMRC recorded in April 2023.
According to the latest figures supplied to Plum, the average Isa millionaire had an investment pot worth around £1,348,000 in April 2024. Among the top 25 Isa holders, the mean market value reached £11,928,000, rounded to the nearest £1,000.
The vast majority of these investors, roughly 7,300 people, held balances between £1,000,000 and £1,999,999.
Meanwhile around 60 had pots worth £4,000,000-plus. The average value of holdings among this group was £7,708,000.
HMRC also cautioned that figures should be used as a “guide” – as individual level Isa data is provided to it annually by Isa managers, however each year a proportion will enter records incorrectly, or fail to submit.
Isas enable savers to turbo-boost their funds as accounts that are ringfenced from tax.
Will Bryant, director of wealth strategy at Plum, said: “A jump of more than 50% in a single year is really telling.”
He said the Isa millionaires are not people who “suddenly saved” their way to £1 million.
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Highlightng the benefits of compound interest boosting pots over time, he added: “It’s the result of years of patient investing, where the growth on your growth starts doing the heavy lifting. That’s the bit people underestimate.
“These figures underline the value of investing and the importance of taking a long-term approach.
“Despite the geopolitical volatility of recent years, global markets powered by the US stock market have continued to climb.”
In April 2027, the annual cash Isa limit will be slashed from £20,000 to £12,000 for savers aged under 65, although the overall annual Isa allowance will remain at £20,000.
The cash Isa allowance for people aged 65 and over will remain at £20,000.
Mr Bryant said the changes “may lead people to use more of their stocks and shares Isa to make full use of their tax-free allowance,” but he added: “Many people simply won’t know what’s changing.”
Figures released by HMRC in September showed around £135.7 billion was subscribed to adult Isas in the tax year 2024-25 – a £32.7 billion annual increase.
The £32.7 billion increase was driven by a rise in cash Isa subscriptions, which grew by 37.5% or £26.1 billion.
Stocks and shares Isa subscriptions saw a 19.7% or £6.1 billion annual increase, and Lifetime Isa subscriptions had a 20.1% or £472 million rise.
Maike Currie, vice president of personal finance at PensionBee, said: “Isas are one of Britain’s great savings success stories.
“Their beauty lies in their simplicity: a straightforward, tax-efficient way for ordinary people to build wealth and take greater control of their financial futures.
“And you don’t need to become an Isa millionaire to benefit.”
Ms Currie said cutting the cash Isa allowance and introducing additional restrictions “risks making a simple product unnecessarily complicated, potentially undermining confidence at precisely the time we need more people saving and investing”.
Katie Horne, banks relationship manager at Flagstone, said: “The beauty of the Isa is that it allows savers to take risk through stocks and shares investments at points in their lives when it makes sense, and then to de-risk through cash savings at others.
“The appeal of the Isa has been its completeness and simplicity – two factors which are now at risk.”
Charlene Young, head of technical at AJ Bell, said: “If you aspire to amass an Isa million, it’s best to get started as early as possible and do so with a ‘get rich slow’ mindset.
“There will be younger investors with a high-risk appetite who have achieved huge returns, but ordinary investors are normally best served by a diversified portfolio held for the long term.
“There isn’t a single, sure-fire route to becoming an Isa millionaire.
“Analysis of AJ Bell’s Isa millionaire investors has shown that shares and trusts are especially popular, but there are plenty using funds too.
“The important thing is to invest in what you feel comfortable with and understand the level of risk you are taking in return for the potential reward.”
