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ISA Allowance 2010, the new ISA Limits.

 

 

 

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  Individual Savings Accounts - ISA.  Mini & Maxi ISA Allowances.

 



Individual savings accounts allowance (ISA limit 2010)


The annual individual savings allowance has changed.
The new annual ISA limit is now £10,200 with the deadline to use the 2010/2011 ISA allowance being 5th April 2011.


Each year the ISA Allowance is set by the government and any changes in ISA limits are announced in the budget speech. New ISA limits have been introduced which increase the overall ISA allowance to £10200.
Please see ISA Allowances table below for 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 which means ISAs tend to be a very popular & tax efficient method of saving. ISAs are flexible because they allow both lump sum investments as well as regular fixed contributions.

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.


ISA allowances & limits

The limit for a cash ISA is now £5100 for and the limit for a Stocks & Shares ISA is £10200. The overall combined ISA allowance is £10200.

From October 2009, ISA limits were increased for anyone over 50 to £10200, £5100 of which could be saved in cash. Now everyone can benefit from the new ISA limits.
 

     
  Old ISA Allowances (2009/2010)  
  Cash ISA Allowance

£3600

  Stocks & Shares ISA Allowance £7200
  Overall ISA Allowance £7200
 
  New ISA Allowances (2010/2011)  
  Cash ISA Allowance £5100
  Stocks & Shares ISA Allowance £10200
  Overall ISA Allowance £10200
     
 



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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