How to become a millionaire: ISAs or Lottery

There are now more ISA millionaires than National Lottery millionaires, according to new HM Revenue & Customs (HMRC) figures. 

The figures were obtained by a freedom of information request by Plum to HMRC and revealed that there were over 5,000 ISA millionaires by the end of the 2022/23 tax year with a further 7,470 pots that would have likely reached seven figures since the data was recorded.

The National Lottery, conversely, produced a little over 7,700 millionaires by 2025 and is expected to add only another 400 this year, leaving it notably behind the growing ISA millionaire class.  

With tens of thousands more pots forecasted to be added to the ISA millionaire list over the next decade, ISA millionaire status is becoming the new golden target for ambitious savers to reach.

The average ISA millionaire held a pot worth £1.35 million at the end of the 2022/23 tax year, while the top 25 ISA millionaires had average holdings of £11.3 million each.

This marks yet another victory for ISAs and demonstrates the popularity and effectiveness of the UK’s most well-known tax-free investment wrapper.

What is an ISA?

An ISA, or ‘Individual Savings Account’, is a scheme that allows anybody to hold cash, shares and unit trusts free of tax on dividends, interest, and capital gains. Essentially, it’s a savings account that you don’t pay tax on.  

A cash ISA is a tax-free savings account that allows people to save cash without incurring income tax on interest. They have become more popular over the past few years due to rising interest rates increasing the competitiveness of savings products.  

You can save up to £20,000 each tax year across ISAs and receive tax-free interest payments and capital gains, so when the value of your ISA increases, you get to keep all of it tax-free. Though the total amount you can save across your ISAs is £20,000, some ISAs have specific limits, such as the Lifetime ISA which is currently £4,000 per annum and of course the cash ISA limit will be falling to £12,000 from April 2027 for those aged under 65.  

While there is a £20,000 allowance in place for how much you can put in per year, there is not a cap on how much you can accumulate in an ISA over a lifetime.  

If you want to find out more, why not give us a call on 0333 323 9065 or book a free non-committal initial consultation with one of our chartered advisers to see how we can help.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 

The Financial Conduct Authority (FCA) does not regulate cash flow planning.