Global stock market volatility has led to a decline in the number of ‘ISA millionaires’, new data shows.
A Freedom of Information request led to the disclosure by HM Revenue and Customs (HMRC) of a dip of 520 in millionaires numbers.
The number fell to 1,480 from 2,000 a year earlier, and although overall numbers declined, average millionaire pot increased by 7% to £1,513,000, up from £1,412,000 last year.
Additionally, the number of investors with more than £3mln in their ISA increased from 60 a year earlier to 90.
Some 40 investors had pots worth at least £4mln at the top of the Isa tree, according to HMRC in response the to FOI request by marketplace InvestingReviews, with average holdings totaling £7,921,000.
Savings in Isas are exempt from taxation, and up to £20,000 can be contributed during the current tax year.
Investments in stocks and shares tend to perform better over the long term than cash, although there is a risk that investments may lose value.
The latest HMRC millionaire figures are based on ISA values on April 5, 2020, a time when pandemic and lockdowns were heavily affecting global markets.
The figures were compared with the number of ISA millionaires a year ago, in 2019.
InvestingReviews chief Simon Jones said, “We expect Isa millionaire numbers to rebound in the short to medium term as equity markets recover from a period of uncertainty.
For investors with a long-term horizon, a stocks and shares Isa remains an excellent route to millionaires’ row.”