Investment platform, Bestinvest, said.the number of customers maxing out their yearly allowance more than tripled in the first two weeks of October compared to the two-year average for 2022 and 2023.
The firm noted a 344pc increase in numbers of people choosing to invest their full Isa allowance this month.
In September, increases for contributions of more than £15,000, £10,000 and £5,000 were 208pc, 213pc and 188pc respectively when compared with the years prior.
Alice Haine, of Bestinvest, said: “Fears that the Chancellor is planning to hike capital gains tax rates on the sale of shares has fuelled investor appetite for stocks and shares ISAs, the tax-free savings account that allows adult investors to shelter up to £20,000 this financial year.
“We have seen a surge in the number of clients making sizeable contributions into their ISAs, including a dramatic increase in the number of people maxing out their allowance in full by adding £20,000.
Interactive Investor, another online investment site, said the number of their clients maxing out the annual allowance rose 65pc between July and September compared to the same period last year.
The firm also noted a 44pc rise in that period in transactions for an Isa product that allows savers to shelter assets within tax efficient savings accounts by expending any unused Isa allowance.
Myron Jobson, of Interactive Investor, said: “Fears of a less generous investment taxation regime have provided extra impetus for investors to do what they should already be doing – making the most of the tax-efficient ISA wrapper, which shields gains and income generated from investments from tax.”
