Start of tax year snapshot: most-bought ISA investments in April 2025
Record Bed & ISA transactions in April and ISA millionaires are at it again with 28% already maxing out their new allowance.
13th May 2025 10:36
by Myron Jobson from interactive investor
- Three of the busiest days of trading on interactive investor came days into the new tax year (7, 8 and 10 April) in the aftermath of Trump’s tariff announcements
- interactive investor’s senior investment analyst, outlines three fund ideas for the new tax year.
April was the busiest month on record for Bed & ISA transactions at interactive investor, the UK’s second-largest DIY investment platform, as investors moved swiftly to take advantage of the freshly reset £20,000 ISA allowance at the start of the tax year.
- Learn with ii: How to become an ISA millionaire | ISA Investment Ideas | Top ISA Funds
Bed & ISA transactions on interactive investor rose by 10% in April 2025 compared to the same period in 2024 – as well as being nearly four times (365%) the volume seen in March 2025.
Bed & ISA, which involves transferring assets held outside a tax wrapper into an ISA to shelter future investment growth and income from tax, has become increasingly popular following cuts to capital gains tax (CGT) and dividend tax allowances (to £3,000 and £500 respectively).
The rate of CGT increased following the Autumn Budget at the end of October 2024 from 10% to 18% for basic-rate taxpayers and from 20% to 24% for higher-rate taxpayers.
Myron Jobson, Senior Personal Finance Analyst, interactive investor, said: “It’s clear that many investors have been quick off the mark to maximise their ISA allowances this year, keen to shield their investments from a tightening tax regime. With cuts to capital gains tax and dividend tax allowances, there’s a renewed urgency to make the most of every tax-efficient opportunity. ISAs remain a crucial tool for building and protecting long-term wealth, offering a straightforward way to keep more of your returns out of the taxman’s reach.”
ISA millionaires quick off the mark
ISA millionaires on interactive investor, the most popular DIY investment platform among this group*, were quick to act, with 28% of the cohort fully utilising their £20,000 ISA allowance in April, up three percentage points compared to the same period in 2024. Across ii’s broader ISA customer base, 5% have already fully utilised their allowance for the current tax year – an increase of one percentage point compared to April 2024.
Myron Jobson says: “ISA millionaires have wasted no time in fully utilising their allowances at the start of the new tax year, recognising the long-term benefits of investing through a tax wrapper. Getting money into an ISA early means your investments have more time to grow, with gains and dividends shielded from tax – a crucial advantage in the current climate of tightening tax allowances.”
Most-bought investments among ii ISA customers in April 2025
Position | Company Name |
1 | |
2 | |
3 | |
4 | Vanguard S&P 500 UCITS ETF |
5 | |
6 | |
7 | |
8 | |
9 |
Source: interactive investor.
Three of top five busiest days of trading came at the start of new tax year
Three of the busiest days of trading on interactive investor came days into the new tax year (7, 8 and 10 April) in the aftermath of Trump’s tariff announcements (made on the evening of 2 April BST), which triggered widespread declines in global markets.
Top five busiest trading days on interactive investor
Position | Date | Event |
1 | 7 April 2025 | Trump tariffs |
2 | 4 April 2025 | Trump tariffs |
3 | 9 November 2020 | Pfizer Covid-19 vaccine |
4 | 8 April 2025 | Trump tariffs |
5 | 10 April 2025 | Trump tariffs |
Three ISA investment ideas for 2025
Alex Watts, senior investment analyst, interactive investor, outlines three investment ideas for the new tax year.
Fidelity Special Values Investment Trust (FSV)
“UK equities have made a strong start to the year, outpacing the US market. So far, the UK has largely avoided the impact of recent US tariffs, which have mainly targeted countries with trade deficits with the US. If domestic stocks continue to show resilience, an allocation to the UK could benefit investors.
“Fidelity Special Values Ord (LSE:FSV) is a UK investment trust that seeks out undervalued companies with turnaround potential. It follows a bottom-up, contrarian approach, investing in companies across various sectors before broader recognition of their recovery, whether in operational performance or market sentiment. The portfolio predominantly consists of UK-listed equities, although up to 20% of net assets can be held in non-UK stocks.
“Key to this strategy is a focus on undervalued opportunities, typically targeting companies with price-to-earnings ratios well below 15x, where the market is yet to realise their future potential. This often leads to investments outside the FTSE 100.”
Neuberger Berman US Multi-Cap Opportunities Fund
“For investors concerned about the concentration of the US market in a few mega-cap names, Neuberger Berman US Multi-Cap Opportunities fund offers a broader approach. It is unconstrained, investing across the market cap spectrum, from small to mega-cap.
“The portfolio consists of 30-40 holdings, selected through rigorous fundamental analysis, with a strong focus on cash flow and capital allocation. This diversified approach aims to capture opportunities often missed by narrower, large-cap-focused funds.”
Goldman Sachs India Equity Portfolio
“This fund provides exposure to the fast-growing Indian market and benefits from the experience of Hiren Dasani. GS India Equity has consistently outperformed its benchmark, the MSCI India IMI index, over multiple time frames, including four out of the past five calendar years, as well as over five- and 10-year periods.
“The portfolio has a multi-cap focus, with a preference for businesses boasting competitive advantages and strong growth prospects. The team’s on-the-ground presence in India provides a critical edge in identifying high-potential companies.”
*interactive investor: the most popular investment platform for ISA millionaires
interactive investor is the most popular investment platform among ISA millionaires. The number of ISA millionaires on interactive investor, the UK’s second-largest DIY investment platform, now stands at 1,607 (as of 28 February 2025) - almost 300 more than the total from our largest competitor Hargreaves Lansdown (1,322 as of December 2024).
There were some 4,850 Britons with a seven-figure ISA portfolio by the end of the financial year in 2022 (latest figure available), according to data obtained following a freedom of information (FOI) request.
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