ISAs
Indivdiual Savings Accounts (ISAs) are available to all UK residents over 18 yrs of age. They benefit all taxpayers, especially those paying the higher rate. Unfortunately, they are not quite as easy to understand as they should be. Here goes:
They're the latest Government scheme to stop the taxman getting his hands on your savings, replacing PEPs and TESSAs, but if you have one of these don’t worry, you can keep your existing PEPs indefinitely and TESSAs until maturity.
You can invest into a number of components in ISAs, cash, stocks and shares to include unit/investment trusts, Open Ended Investment Companies (OEICs), Gilts (bought with at least 5 years until maturity), or any share quoted on a stock exchange recognised by the Inland Revenue- and finally, life insurance, although not all providers offer this last option. It’s possible to combine all three components.
If you have a maturing TESSA you can invest the original capital (without accrued interest) into a special TESSA only ISA. This will not effect your ISA allowance in the given year.
This is where it gets complicated!
Basically, you can invest a maximum of £7,200 into ISAs. You can choose to do this by having up to £3,600 in a CashISA and £3,600 in a Share ISA or by using the full allowance through a Share ISA.
Speak to Prosperity Financial Management Ltd about your ISA or reviewing your existing PEP investments.
See Also:
See Also:
CAT marked ISAs
Self Select ISAs