Official Statistics

Background quality report: Individual Savings Accounts, Tables 9.7 to 9.12

Published 8 June 2021

1. Introduction

The published Tables 9.7 to 9.12 provide income, age, sex and regional dimensions to annual Individual Savings Account (ISA) subscriptions and market values published in ISA tables Table 9.4 and Table 9.6.

Tables 9.7 to 9.12 are based on ISA account Third Party Information (TPI) provided electronically to HM Revenue and Customs (HMRC) by financial institutions using an ISACOM100 report for each account they hold.

This information enables HMRC to ensure that individuals comply with the annual ISA savings limits irrespective of which ISA provider an individual may hold an account with. This compliance activity is performed on the approximately 40 million ISA accounts owned by about 24 million individuals.

In order to incorporate information on income, age and sex, Tables 9.7 to 9.12 are based on a sample of cases that are also represented in the HMRC Survey of Personal Income (SPI)

• Table 9.7 estimates the number of adults subscribing to an ISA by income during the year, including those subscribing at the relevant annual savings limits for the year in question
• Table 9.8 estimates the number of adults subscribing to an ISA during the year by age and sex
• Table 9.9 estimates the number of adults subscribing to an ISA during the year by region
• Table 9.10 estimates the market value of Adult ISA funds by income level of investor
• Table 9.11 estimates the market value of Adult ISA funds by age and sex of investor
• Table 9.12 estimates the market value of Adult ISA funds by country and region

Because ISA annual savings limits are set by reference to personal tax years the information is collected by tax year and is presented similarly in these tables.

2. Relevance

Relevance is the degree to which the statistical product meets user needs in both coverage and content.

ISAs offer a tax free wrapper for savings by individuals and most individuals find them attractive because of their simplicity.

The purpose of the ISA statistics in Tables 9.7 to 9.12 is to provide more insight into the data than Tables 9.4 and 9.6 can provide by adding an income, age, sex and regional breakdown to ISA subscriptions and market values.

Particular tables also identify individuals subscribing at the annual limits as well as those not making any further subscriptions during the year in question.

The information in Tables 9.7 to 9.12 may be useful to policy makers, analysts, and journalists. It is also relevant in estimating the overall tax cost of ISAs (estimated at around £3.5 billion in relation to the income and capital gains tax foregone on investment returns) and to the distribution of this cost across taxpayer types.

The published information in Tables 9.7 to 9.12 is presently confined to Adult ISAs. Children are unlikely to be represented in the SPI sample so it is not expected that comparable tables will be published for Junior ISAs.

3. Accuracy and reliability

Accuracy is the proximity between an estimate and the unknown true value. Reliability is the consistency of the estimates.

Data from the electronic returns is subject to validation checking and cleansing.

Information on income, and other taxpayer characteristics is incorporated by matching the ISA data with the sample of taxpayers included in the SPI and performing imputation in order to constrain to an independently derived estimate of the numbers of individuals holding an ISA account.

Estimates are not prepared of the confidence intervals attached to the estimates published in Tables 9.7 to 9.12.

4. Timeliness and punctuality

Timeliness and punctuality refer to the time gap between publication and reference period, and to the gap between planned and actual publication dates, respectively.

Tables 9.7 to 9.12 are all published annually in May to a pre-announced date in line with the national Code of Practice for Statistics. Release dates are announced on the HMRC National Statistics website.

Due to the need to match the data with the SPI sample for the comparable year, the ISA statistics cannot be prepared until the SPI is ready. Consequently, Tables 9.7 to 9.12 are published two years in arrears of the current year.

5. Accessibility and clarity

Accessibility is the ease with which users are able to access the data, also reflecting the format in which the data are available and the availability of supporting information. Clarity refers to the quality and sufficiency of the metadata, illustrations and accompanying advice.

The statistics are published on the HMRC website and are free to all users.

There is also supporting information which gives background details to methodologies, hyperlinks for references, and contact details.

6. Coherence and comparability

Coherence is the degree to which data that is derived from different sources or methods, but refer to the same topic, are similar. Comparability is the degree to which data can be compared over time and domain.

The TPI data provided by ISA managers is directly comparable with the summary information they provide on paper forms ISA14, ISA25 and ISA14a and which are used in the preparation of ISA tables Table 9.4 and Table 9.6.

Historic data going back to the introduction of ISAs in 1999 to 2000, can be viewed in the National Archives. However, the ISA statistics only cover one aspect of the savings options of individuals and in so far as they are subject to annual savings limits, and which have fluctuated over time, don’t necessarily provide an insight into personal sector savings in a wider UK National Accounts context.

7. Trade offs between output quality components

Trade offs are the extent to which different aspects of quality are balanced against each other.

A large amount of time is spent guaranteeing the quality of the data in order to ensure as good a match as possible with the SPI sample.

8. Assessment of user needs and perceptions

The processes for finding out about users and uses, and their views on the statistical products.

A mailbox for user feedback is provided in the ISA tables; this is monitored periodically. Regular contact is maintained with HMRC and HM Treasury, major users of the data.

The information collected from ISA providers is limited to what is needed to enforce compliance with the annual savings limits. As such, this administrative data source cannot provide information on issues such as the volume of transfers of accounts between providers and the average time taken, or the rates of return on ISA cash accounts.

9. Performance, cost and respondent burden

The effectiveness, efficiency and economy of the statistical output.

The data used is required by HMRC for administrative purposes in enforcing compliance with the annual subscription limits. There is no additional statistical burden being placed on ISA providers.

10. Confidentiality, transparency and security

The procedures and policy used to ensure sound confidentiality, security and transparent practices.

All the data is handled internally in line with the HMRC statistics policy on confidentiality and access to third party information.

There is no disclosure risk in the published Adult ISA statistics given the very large numbers of individuals holding ISAs.