insure & invest

ISA Individual Savings Account Allowance:  NEW ISA Allowance from 6th October 2009

Factfile: Individual Savings Accounts - ISA Allowance

Lump sum investments: Yes

Regular premiums allowed: Yes

Maximum investment (per tax year):

ISA Allowance - After 06/10/2009 (over 50's) and 06/04/2010 For All People

• £10,200 per year of which
• Maximum of £5,100 can be in the cash component and the balance in stocks and shares up to the £10,200 limit in total. 
  
• For people under 50, the new limits came into effect on 6 April 2010.

(OLD ISA Allowance- Tax Year 2008/2009: Maximum investment in ISAs is *£7,200 per year of which a maximum of *£3,600 can be in the cash component and the balance in stocks and shares up to the £7,200 limit in total. In addition, before 6 April 2008, there used to be Mini-ISAs and Maxi ISAs - Mini Cash ISA - £3,000 per year plus Mini ISA Stocks and Shares - £4,000 per year  or  Maxi ISA - Stocks and Shares (only if have not paid into a Mini ISA) - £7,000 per tax year)

Flexible payments allowed (stop/start/additional/increase/decrease):  Yes

Investment Risk Profiles Available:

• No Risk funds available
  
• Low Risk funds available
  
• Medium Risk funds available
  
• Medium to high risk funds available
  
• High risk funds available
  

Changing funds and risk profile allowed:  Yes for normal ISA no for Cash ISA

Moving to another company allowed: Yes

Life Insurance Included:  No

Personal Tax Benefits:

• Capital gains tax free
• Income Tax Free
• No personal liability to taxes  
• Investment fund cannot reclaim tax credit on dividends

Can be held inside Trust:  No

Suitable For: 

• Adults
• 16 years old for cash ISAs
• 18 years old for stocks and shares ISAs
• Non Tax Payers - cash ISAs only not stocks and shares ISA
• Basic Rate Tax Payers
• High Rate Taxpayers

Insolvency Compensation Limits:

• Bank and Building Society Accounts - Maximum compensation for insolvency £50,000
• Investment Company - Maximum compensation for insolvency £50,000.
  
• Do not invest more than £50,000 with any one company.

Brief Description:

Individual Savings Accounts are virtually tax free and have been available since 6th April 1999.  You can have an ISA if you are at least 18 years old (16 years old for a cash ISA) and a UK resident.   

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