The tax free savings option
Changes to the ISA rules
On 6 April 2008 the Government changed ISA rules. The changes make investing simpler and more flexible.
On 6 October 2009 the Government announced increases to the ISA limits for those aged 50 or over during the tax year 2009/10 and new limits for everyone from the 2010/11 tax year.
Q. What happens to my existing ISAs?
Mini cash ISAs, Tessa-only ISAs (TOISAs) and the cash component of a maxi ISA have all been reclassified as ‘cash ISAs’.
Mini stocks and shares ISAs and the stocks and shares component of a maxi ISA have been reclassified as ‘stocks and shares ISAs’.
Q. What happens to my PEPs?
All Personal Equity Plan (PEP) accounts have automatically become stocks & shares ISAs and become subject to the ISA rules.
Q. What are my ISA options now?
From April 2008 ISA savers will be able to invest in two separate ISAs each tax year; one cash ISA and one stocks and shares ISA.
Q. How much can I invest in an ISA?
From 6 October 2009 the annual ISA investment allowance has been raised to £10,200 for those aged 50 or over.
Up to £5,100 of that allowance can be saved in cash with one provider. The remainder can be invested in stocks and shares with either the same or a different provider.
The annual ISA investment allowance for those under the age of 50 is £7,200. Up to £3,600 can be saved in cash with one provider. The remainder can be invested in stocks and shares with either the same or a different provider
From 6 April 2010 the annual ISA investment will rise to £10,200 (of which up to £5,100 can be saved in cash) for everyone.
Q. What options do I have with my existing ISAs?
You can transfer some or all of the money saved in previous tax years from cash ISAs to stocks and shares ISAs without affecting your annual ISA investment allowance.
However, you cannot transfer money saved in previous tax years from stocks and shares ISA to a cash ISA. You are still able to transfer existing ISAs between providers.
Q. Do you accept inward transfer of cash ISAs previously known as Mini Cash ISA from other financial institutions?
Yes, please contact us for further information.
Q. Has the government confirmed future plans for ISA availability?
Yes, ISAs are now available indefinitely.
Q. I’ve still got questions. Who can I speak to?
For more information on the changes to the rules visit the HM Revenue & Customs website
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Alternatively you can contact our helpful customer service staff on 0845 845 0829 between 8am and 6pm Monday to Friday and Wednesdays from 10am or by using our Product Enquiry form.
