NISAs (ISAs)

From the 1st of July 2014 all ISAs became New ISAs (NISAs). This applied to all existing ISAs and new accounts opened after the 1st of July 2014.

New Individual Savings Accounts (NISAs) are available to all UK residents over 18 years of age, 16 years of age for the Cash ISAs. They benefit all taxpayers, as any income or capital gains received from investments held within an ISA do not have to be declared to the tax man. 

NISAs can invest in cash or in stocks and shares (including unit trusts, investment trusts, Open Ended Investment Companies, some fixed interest securities, or any share quoted on a stock exchange recognised by H M Revenue and Customs.)

The overall ISA limit has increased to £15,000 from the 1st of July 2014 from £11,800 in the 2013/2014 tax year.  From the 1st of July 2014, you will be able to split the amount you pay into an ISA between a Cash NISA and a Stocks and Shares NISA as you choose - up to the new overall annual NISA limit of £15,000. Previously, it has only been possible to save up to half of th eoverall ISA subscription limit n a Cash ISA.

Any subscriptions you have made to an ISA since April 2014 will count against the £15,000 NISA subcription limit for 2014-2015.

If you have paid into a Cash or Stocks and Shares ISA since the 6th of April 2014, you will not be able to open a further NISA of the same type before the 6th of April 2015. You may however make additional payments - up to the £15,000 NISA subscription limit - into your existing account(s) or by transfering those account(s) to another provider that will allow additional amounts to be added.

Investment Limits

Cash NISA's - Cash NISA's are widely available with different interest rates. It is a good idea to shop around for the best Cash NISA rates. It is important however to understand the conditions attached to those rates, for instance access may be restricted in order to achieve that particular rate. 

NISAs offer flexability to save your NISA annual allowance of £15,000 in cash, stocks and shares, or any combination of the two. Under the NISA rules you will also be able to transfer previous years' ISA savings freely between stocks and shares and cash if you wish.

THE VALUE OF INVESTMENTS AND INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.

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