ISA millionaire numbers hit record high with over 5,000

The latest annual figures from HMRC reveal a 5 per cent jump despite volatile market conditions

- KARL MATCHETT

The number of ISA millionaires in the UK has surged to a record high, surpassing 5,000 for the first time.

A freedom of information (FOI) request from money platform Plum showed that HMRC recorded 5,070 ISA millionaires at the end of the 2022-23 period - the latest figures available – which represents a 5 per cent gain on the year before, meaning there are likely to be even more now.

Each person in the UK gets a maximum £20,000 annual tax-free savings allowance to put into ISAs.

While it's possible to become an ISA millionaire simply by saving cash and trying to get a good interest rate, it would take a long time, and the real value of any interest would likely be eroded by inflation. But those who invest their cash - such as in stocks and shares ISAs, which typically yield higher interest - have typically seen far better returns over the long term.

The latest HMRC figures show that 50 investors who did just that now have ISA pots exceeding £4m.