Individual Savings Account (ISAs) ...
NB - Legislation relating to Individual Savings Accounts is subject to change.
Individual Savings Accounts are available to all UK residents 16 years of age and over for Cash ISAs and 18 years and over for stocks and shares 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 HMRC.
In the 2009 Budget, the Government made a series of changes to the way Individual Savings Accounts (ISAs) work.
For the 09/10 tax year you are able to invest in one Cash ISA and one Stocks & Shares ISA and have an annual subscription of £7,200. The distinction between Mini and Maxi ISAs has been removed.
Currently, you can pay up to £3,600 into a Cash ISA and the balance of the full amount of £7,200 into a Stocks & Shares ISA. For example, you can choose to save £1,000 in a Cash ISA with one provider and £6,200 in your Stocks & Shares ISA. If you want both a Cash ISA and a Stocks & Shares ISA, they can be from different providers.
After 6th October 2009, the overall ISA limit for investors over the age of 50 will increase to £10,200 of which £5,100 can be saved in cash. These higher limits will be available to over-50s from October 2009 and to everyone from 6 April 2010.
You are able to transfer previous years Cash ISAs to Stocks & Shares ISAs. PEPs have also been brought within the ISA wrapper. All PEP accounts automatically become Stocks & Shares ISAs on 6th April 2008, and are subject to ISA rules.