Number of ISA millionaires surges to record high with 25 people holding pots worth £12m

The count of individuals with stocks and shares ISAs totaling £1 million or more in the United Kingdom surged to an all-time high in the 2023/24 tax year. According to an information request from the financial app Plum to HM Revenue and Customs (HMRC), the total number of such millionaires reached 7,730, marking a 50% increase and a significant 2,660 more than the previous year.

The average millionaire held an ISA pot valued at approximately £1.3 million in April 2024. A mere 60 individuals possessed assets worth around £4 million, while the top 25 savers had accounts averaging £11.9 million. Will Bryant, director of wealth strategy at Plum, noted that these individuals' wealth is not the result of recent saving efforts but rather years of patient investment, where their gains on their gains continue to grow.

The popularity of stocks and shares ISAs has risen due to increased awareness of their benefits, especially as people seek alternatives to cash savings. Bryant emphasized that the figures highlight the value of investing and the importance of a long-term approach, even amidst global market volatility. The UK government has also considered the impact of inheritance tax (IHT) reforms, as ISA pots will remain exempt from IHT if passed to a spouse or civil partner.

However, the cash ISA saving limit is set to decrease from £20,000 to £12,000 in the next financial year, while the stocks and shares ISA limit remains at £20,000. HMRC data from September revealed that around £135.7 billion was subscribed to adult ISAs in the tax year 2024/25, a £32.7 billion increase compared to the previous year.