British ISA

New UK British ISA announced in the March 2024 budget

The new UK British ISA 

UK chancellor Jeremy Hunt revealed the British ISA as part of the Spring Budget 2024.

The British ISA aims to boost demand for UK businesses and encourage investment in UK-focused assets.

Key Features

Additional Allowance

The British ISA provides a separate £5,000 annual allowance in addition to the existing £20,000 ISA allowance.

Tax Advantages

Like other ISAs, investors in the British ISA will not pay tax on capital gains or income.

Investment Focus

While it’s not yet clear whether the new ISA will be exclusively for UK shares, it is expected to support UK-focused funds and investment trusts.

Eligibility Uncertainty

The inclusion of UK gilts or UK corporate bonds remains uncertain.

Consultation Period

The consultation period for the British ISA runs until June 6, 2024.

Potential Impact – Reviving UK Stock Market

The British ISA aims to revive interest in the UK stock market, which has faced challenges since the Brexit vote in 2016.

Supporting UK Companies

By providing tax-free savings opportunities, the ISA encourages investment in UK businesses.

Fund Industry Support

Fund management firms, including Premier Miton, lobbied for the British ISA’s creation.

Historical Context

The British ISA draws parallels with its predecessor, the personal equity plan (PEP), which focused on UK shares and funds.

ISAs replaced PEPs in 1999.


In summary, the British ISA introduces an additional allowance for UK-focused investments, supporting savers and UK companies alike. Its impact on the stock market and investor sentiment remains to be seen, but it represents a step toward bolstering the UK’s economic landscape

By ensuring that companies are valued fairly, a stronger stock market will facilitate the capital raising process for companies that seek to grow and attract more listings. This will have a positive impact on the economy and employment and is ultimately in everyone’s interest.

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