The number of ISA millionaires in the UK has soared to a record high of 4,070, according to latest figures.

A Freedom of Information (FOI) request by The Openwork Partnership revealed that the number of millionaires tracked by HMRC has almost tripled year-on-year, from 1,480 to 4,070 in April 2021, which was the latest available data.

ISAs first launched in 1987, as PEPS, with a £2,400 annual allowance. Today, investors can pay in £20,000 annually with all contributions and gains sheltered from income and capital gains tax.

According to the figures, the 50 top investors are sitting on average pots of £8.5m, while the average ISA millionaire pot stands at £1.4m. Nearly all millionaires are believed to be stocks & shares investors, The Openwork Partnership said.

The new overall millionaire figure of 4,070 has also smashed the previous high of 2,000 millionaires recorded by HMRC in 2019. ISA millionaire numbers have now increased almost tenfold since 2016 when they stood at just 450.

Head of partnership services at The Openwork Partnership, Setul Metha, said: “The ISA has not only created thousands of millionaires, but it has also empowered millions of ordinary investors to build a nest-egg alongside their pension. It is perhaps the best tax-free investment wrapper in the western world.

“Of course, becoming an ISA millionaire takes time, money and a little bit of knowledge. But the rise in personal finance content online means the roadmap to millionaires’ row has never been more clearly signposted.

“A stocks & shares ISA holder consistently maxing out their £20,000 allowance could reasonably expect to smash through the seven-figure mark after around 22 years assuming average returns of 7% per annum.”

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