ISA changes – and what they mean for the Prudential ISA

Changes to the ISA regulations which are due to take effect from 6 April and how they relate to the Prudential ISA are detailed below;

• the ability to subscribe to multiple Cash, Stocks and Shares and Innovative Finance ISAs in a tax year
• the customer will no longer have to make a new ISA declaration to contribute to a dormant ISA (one that hasn’t had money paid in for a full tax year)
• the ability to partially transfer current tax year subscriptions as well as previous tax year subscriptions
• all new ISA applications will require the customer to provide their National Insurance Number other than where the manager has received evidence that the individual is unable to have a NINO. Although HMRC have advised this will not apply from 6 April, they have indicated it will be mandated at some point during this tax year.

Please note: most of these changes are not mandatory and will be down to individual ISA managers to decide whether to offer. 

So what do these changes mean for the Prudential ISA?

Customers will continue to only be able to hold one Prudential ISA policy with the ISA manager, Link Financial Investments Limited. Customers can apply for as many other ISAs as they wish subject to individual ISA managers' own rules. It will continue to be the customer’s responsibility to ensure the total paid to all of their ISAs in any tax year is within the subscription limit for that tax year.

• The existing online and offline processes for topping up an existing Prudential ISA will continue to require the customer to make a new declaration where they are contributing to a dormant ISA.
• Existing processes will continue to apply for transfers into and out of a Prudential ISA,
  • a partial transfer of previous tax year subscriptions will continue to be allowed
  • current tax year subscriptions must be made in full, partial transfers of these subscriptions can’t be facilitated.

As HMRC have confirmed the intention to implement the mandating of National Insurance Numbers for all new ISA applications at some point this tax year, a decision has been made to carry on with the implementation of this requirement to the Prudential ISA online service for the 6 April 20024. Therefore all new ISA applications from 6 April 2024 will not be able to be submitted without the customer’s National Insurance Number.

• As you’ll know all Prudential ISA applications must be made using the online service unless the customer falls into one of the following exception criteria where the relevant paper application form will be required;
  • has a power of attorney
  • has a deputy appointed by the Court of Protection
  • is resident overseas
  • is switching WS Prudential Risk Managed OEICs held directly with Waystone Management (UK) Limited to a new Prudential ISA
  • is transferring an Additional Permitted Subscription Allowance (APS) as part of a new Prudential ISA application

The Prudential ISA Terms and Conditions will be updated for the 6 April.