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Changes to ISA rules due April 2008


In November 2006, the Government announced a series of reforms to the ISA scheme:

ISA changes 2008: The annual ISA investment allowance will be raised to £7,200

The annual ISA investment allowance will be raised to £7,200. Up to £3,600 of that allowance can be saved in cash with one provider. The remainder of the £7,200 can be invested in stocks and shares with either the same or a different provider.
 
ISA changes 2008: ISA savers will be able to invest in two separate ISAs each tax year

ISA savers will be able to invest in two separate ISAs each tax year; a cash ISA and a stocks and shares ISA. Mini and maxi ISAs will no longer exist.
 
ISA changes 2008: Mini cash ISAs, TESSA-only ISAs (TOISAs) and the cash component of a maxi ISA will automatically become cash ISAs

Mini cash ISAs, TESSA-only ISAs (TOISAs) and the cash component of a maxi ISA will automatically become cash ISAs.
 
ISA changes 2008: Mini stocks and shares ISAs and the stocks and shares component of a maxi ISA will automatically become stocks and shares ISAs

Mini stocks and shares ISAs and the stocks and shares component of a maxi ISA will automatically become stocks and shares ISAs.
 
ISA changes 2008: All Personal Equity Plans (PEPs) will automatically become stocks and shares ISAs

All Personal Equity Plans (PEPs) will automatically become stocks and shares ISAs
 
ISA changes 2008: ISA savers will be able to transfer money saved in their cash ISA to their stocks and shares ISA

ISA savers will be able to transfer money saved in their cash ISA to their stocks and shares ISA.

The Government has since confirmed that these changes will be implemented with effect from 6 April 2008. More information is available on the Inland Revenue website

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