ISA Changes 2008
ISA Changes 2008
When it comes to ISA changes, 2008/2009 is an important tax year, because it has marked some important alternations which are aimed at simplifying tax-free savings and encouraging more people to invest in an Individual Savings Account. Previously, you could invest £7,000 in total, all of which could be in stocks and shares, or £3,000 in cash and the remainder in stocks and shares if you wish.
Since the ISA changes 2008/2009, there are now only two types of ISAs to choose from – Stocks and Shares ISA and Cash ISA. The pre-existing options have been reclassified as follows:
Stocks and Shares ISA changes – PEPs (Personal Equity Plans), Mini Stocks and Shares ISAs, and the stocks and shares component of a Maxi ISA have now been reclassified as a Stocks and Shares ISA.
Cash ISA changes – TOISAs (Tessa Only ISAs), the cash component of a Maxi ISA, and Cash Mini ISAs have now all been reclassified as a Cash ISA.
The new ISA rule changes include:
- Maximum total investment of £7,200
- £7,200 can be invested in a Stocks and Shares ISA
- £3,600 can be invested in a Cash ISA
- ISAs are now available indefinitely
- You can now transfer your Cash ISA into a Stocks and Shares ISA
- Money held in Child Trust Funds can be rolled over into an ISA when the child is 18 years old
To make sure you find the best place to make your tax-free savings in light of the new ISA changes, use our free online service to compare leading providers and make the most of your investment by going for one that offers competitive returns while still allowing you the necessary access to your money without incurring penalties for withdrawals.
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