ISA Rule Changes

 ISA rule changes from April 2008

The government changed the rules on ISAs from 6th April 2008 aiming to make them simpler and more flexible.

 The limits from April 2008

Your annual ISA investment allowance is £7,200.

There are no longer Mini and Maxi ISAs. ISA customers are able to invest in either a cash ISA or a stocks and shares ISA or both.

Up to £3,600 can be saved in a cash ISA and the remainder of the £7,200 can be invested in a stocks and shares ISA. The following table shows how your allowance could be used from April 2008.

 Cash ISAStock and Shares ISATotal ISA Allowance
 £1,200£6,000 £7,200
 £3,000£4,200 £7,200
 £3,600 (maximum cash allowance)£3,600 £7,200
 £0£7,200 (maximum stocks and shares allowance) £7,200

 

 Transferring money from April 2008

As well as being able to invest your full ISA allowance of £7,200 in a stocks and shares ISA, you can also transfer some or all of the money held in previous tax year cash ISAs into a stocks and shares ISA. A stocks and shares investment is a long-term investment and although you can take out money you should look to invest for at least 5 years, making sure you have other savings to meet your short-term needs. Please note that you cannot transfer funds from a stocks & shares ISA to a cash ISA.


 PEPs and Child Trust Funds

All PEP accounts from 6th April 2008 will become stocks and shares ISAs and will be subject to ISA rules. You can also now rollover a Child Trust Fund into an ISA on maturity.


 More Information

If you feel that you would like more information about the ISA rules and limits why not pop into branch and speak to an Adviser.

Next Steps

Cash ISAs If your query is about cash ISAs book a free no obligation savings review. Call 08457 26 36 46* to book your review (lines are open 8am to 8pm Monday to Friday, 8am to 4pm on Saturday).
Stocks and Shares ISAs If you want more information about  stocks and shares ISAs and ISA changes call our administration unit on 01904 611110 (lines are open 8am to 6pm Monday to Friday and 9am to 1pm on Saturday). If you feel you need further information about the suitability of stocks and shares ISAs follow the next step or return to the ISA homepage.
Book an appointment No advice has been given on this plan. If you would like to receive individual advice regarding the suitability of his product, you can book an appointment with a Personal Financial Adviser. We give advice on our own products.

* Calls from BT landlines to 0845 numbers will cost no more than 2p a minute plus a 7p connection fee. The price of calls through other phone companies and from mobile phones will be different. If you have a hearing or speech impairment, contact us using Textphone on 08457 323 436 (lines open 9am-5.30pm, 7 days a week).