The number of individuals with more than £1m in their ISA accounts has risen by more than 50% in the last tax year, Murphy Wealth has revealed.

The wealth manager found, through a freedom of information (FOI) request, that more than 7,730 individuals had over £1m in the tax-free wrapper at the end of 2023/24. This is an increase from the 5,070 reported for the previous tax year.

Murphy Wealth revealed that there was an even larger rise in the number of people with more than £2m kept in ISAs. Earlier this year, it was reported that 270 individuals had reached that milestone, which has now risen 59% to 430.

Of those, 40 people have managed to build up pots of more than £5m. HMRC has said it would not disclose the number of individuals with more than £10m in their ISA accounts, with Murphy Wealth estimating that this figure could be between one and five.

The wealth manager stated that building a £1m ISA pot would take around 20 years if a saver used the full £20,000 annual allowance and achieved an average annual return of 8%.

CEO at Murphy Wealth, Adrian Murphy, said it is “highly encouraging” to see more people make use of the power of ISAs and benefit from tax-free growth, income and dividends.

He added: "The rapidly rising number of ISA millionaires shows what can be achieved through patience, time in the market, consistent use of ISA allowances, and the effects of compounding.

"A previous FoI request we made showed that almost all ISA millionaires built their wealth by holding stocks and shares, while none achieved that status through cash alone. This underlines why more people in the UK need to consider investing their savings.

"Positively, attitudes towards investing are changing, and that trend is only likely to accelerate with the changes to the ISA allowance that come into effect next April. People under the age of 65 will then be able to subscribe only £12,000 to cash ISAs, with the remaining £8,000 available for investment in stocks and shares."

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