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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.
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Old ISA Allowances
(2009/2010) |
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Cash ISA Allowance |
£3600 |
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Stocks & Shares ISA Allowance |
£7200 |
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Overall ISA Allowance |
£7200 |
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New ISA Allowances
(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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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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