Calculators
-
Mortgage Calculator
See how much mortgage you can have
-
Debt Calculator
Work out how we can help you manage your debt
Moneyextra.com Dictionary
Individual Savings Account ISA
The Individual Savings Account ISA was launched on 6 April 1999 to replace the Personal Equity Plan PEP and Tax Exempt Special Savings Account TESSA regimes that had been introduced by past governments. At launch it was guaranteed to run for at least 10 years offering some certainty to those who want to use the plan for medium and long-term savings and investments. However the ISA structure was criticised by some as overly complicated and the tax advantages it confers are less attractive than those of its predecessors. New rules took effect on 6 April 2008. Each adult will have an overall allowance of £7200 each tax year - up to half of which £3600 may be invested in a cash ISA. Hence you will have two choices either put a straight £7200 into a stocks and shares ISA or divide it equally between a stocks and share ISA and a cash ISA. Worth pointing out is that Child Trust Funds when they mature - the first of which will do so in 2020 - may be rolled over into ISAs. You will be able to transfer your previous years cash ISAs into stocks & shares ISAs without affecting your annual ISA allowance. And you may also transfer your current years cash ISA into a stocks & shares ISA provided you transfer the whole amount. Crucially however you may not transfer stocks & shares ISAs into cash - perhaps an unfortunate omission given the stock markets recent volatility. See our guide Not all ISAs are the same. Moneyextra.com is here to help you compare ISAs and find the right one for you. ©Moneyextra.com Moneyextra.com recommends you take independent financial advice before acting on any article 2009-02-17 00:00:00 © Moneyextra.com