Finance- Individual savings accounts (ISAs)
Either equities or fixed-interest securities - general information only
The Chancellor decided to increase the attractiveness and flexibility of ISAs with effect from 1st July 2014: ISAs will be reformed into a simpler product, the 'New ISA' or NISA; the previously announced annual investment limit of £11,880 will be increased to £15,000; the junior ISA limit of £3,840 will be increased to £4,000; the different limits for cash ISAs and stocks and shares ISAs will be removed - it will be possible to put the whole amount into cash; existing ISA funds will be brought within the new rules, so it will be possible for existing stocks and shares ISAs to be reinvested into cash.
Flexible ISAs will come into effect from 6th April 2016. This will allow people to withdraw cash from their ISA and reinvest it within the same tax year without affecting their ISA allowance for that tax year.
Always seek independent professional advice before taking any action.
