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Individual savings
accounts allowance (ISA limit 2011).
The annual individual savings allowance has
changed.
The 2011/2012 Cash ISA limit is £5340 with the overall annual ISA limit being £10,680.
The deadline to use the
2011/2012 ISA allowance
is 5th April 2012.
From April 6th 2011, ISA limits will increase in line with the Retail
Prices Index (RPI). This means the overall ISA allowance has increased to
£10680, please see the ISA Allowance table below for full details.
Mini & Maxi ISA allowances, the new ISA rules.
In order to simplify the ISA Structure, the distinction between Mini &
Maxi ISA's has disappeared. Nowadays there's only a distinction between
a Cash ISA and a Stocks & Shares ISA. This means an ISA can
now contain up to 2 different types of investment: - cash
(including national savings plans) and stocks and shares.
ISA investment growth does not normally incur a tax liability. ISAs are flexible because they allow both lump sum investments as well
as regular fixed contributions. In the UK ISA investments tend to be a very popular
and tax efficient method of saving.
Both Cash ISAs and Stocks & Shares ISAs are open to anyone over 18, resident
and ordinarily resident in the UK. Anyone over 16 can have a cash ISA.
Current ISA allowances & limits.
The new 2011/2012 cash ISA limit is £5340 and the
limit for a Stocks &
Shares ISA is £10680. You can invest up to £10680 into a stocks a shares
ISA if you don't take the cash ISA allowance.
The overall combined ISA allowance is £10680 of which £5340 can be invested in a
cash ISA . This leaves £5340 to be invested in a Stocks and Shares ISA if
desired.
New ISA allowance
for 2011/2012.
Following recent changes in government legislation, future ISA limits are
now tied to the Retail Prices Index (RPI).
Future ISA allowances will be set by referring to the official RPI figures
released each September with any increase applying to the ISA allowance for the following tax
year. In the event of a negative RPI the ISA allowance for the following year
will remain unchanged.
The RPI for September 2010 was 4.6% which means for 2011/2012 the overall
ISA limit has increased by £480. The Cash ISA allowance has increased by
£240.This means the Cash ISA limit for 2011/2012 has risen to £5340 and the
overall ISA allowance has increased to £10680.
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ISA allowance summary. |
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Old ISA Limit
(2010/2011) |
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Cash ISA Allowance |
£5100 |
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Stocks & Shares ISA Allowance |
£10200 |
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Overall ISA Allowance |
£10200 |
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New ISA Limit
(2011/2012) |
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Cash ISA Allowance |
£5340 |
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Stocks & Shares ISA Allowance |
£10680 |
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Overall ISA Allowance |
£10680 |
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Transfer between ISAs
It is now possible to transfer money held in a Cash ISA
to Stocks & Shares ISAs without affecting your annual allowance or the
tax status of the investment.
From April 2008 PEPs ceased to exist and any remaining PEP investments
will have been transferred to Stocks & Shares ISAs. The investments
within the PEP will stay the same in the ISA, and will retain their tax
status.
The FSA do not regulate National Savings ISAs.
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