Massive wave of ‘Isa millionaires’ as over 4,000 people now sit on seven-figure sums
- New data shows 4,070 savers held £1m worth of Isa jars in April 2021
- The figures indicate a sharp increase compared to the 1,480 Isa millionaires a year earlier
The number of ‘Isa millionaires’ has risen to more than 4,000, according to figures from HM Revenue & Customs (HMRC).
According to the data, in April 2021, about 4,070 depositors were sitting on Isa pots worth more than £1 million obtained following a freedom of information request (FOI) on behalf of the financial services network Openwork Partnership.
The number of Isa millionaires has almost tripled year on year from 1,480 in 2019/2020, according to HMRC figures.
The latest total is also about nine times the 450 Isa millionaires recorded in 2015/16.
According to the latest April 2021 data, the top 50 Isa investors sat on average pots of £8,509,000.
The number of Isa millionaires has risen to more than 4,000, according to new figures from the HM Revenue and Customs (HMRC)
The average Isa millionaire pot was £1,397,000, and these savers are likely to have their money in stocks and shares.
Isas have the advantage of being shielded from the taxpayer and investors can pay up to £20,000 annually.
Savers do have a personal allowance, which means that many people do not pay tax on savings in various types of non-ISA accounts.
The number of Isa millionaires increased from 1,480 in 2019/20 to 4,070 as of April 2021
But as the savings rate has increased recently, more people could get that allowance.
The personal savings deduction is £1,000 for base rate taxpayers and £500 for higher rate taxpayers.
The personal allowance applies to bank and mortgage accounts, but also to various other types of accounts.
Setul Metha, head of partnership services at the Openwork Partnership, said: ‘The Isa has not only created thousands of millionaires, but it has also enabled millions of ordinary investors to build a nest egg beyond retirement.’