Individual Savings Accounts
ISAs - What are they?
Individual Savings Accounts (ISAs) are
tax-free savings accounts available to most UK
residents. Any monies invested into an ISA and any
subsequent growth is tax-free, which means
individuals do not have to declare any income or
capital gains they receive to the Taxman at all
regardless of an investors tax position. ISAs
therefore have a place in most people's investment
portfolios.
From 6th April 2008, ISA
Investment limits were increased. The limit for a
cash ISA is currently £3600, the Stocks & Shares ISA
is £7200 and the overall allowance is £7200.
From October 2009, ISA
limits will increase for people aged 50 to £10200,
up to £5100 of which can be saved in cash. From 6
April 2010 everyone can benefit from the new ISA
limits.
| New ISA Allowances (2010/2011)
|
| Cash ISA Allowance |
£5100 |
| Stocks & Shares ISA Allowance |
£10,200 |
| Overall ISA Allowance |
£10,200 |
NB...A
financial year runs from 6th April until the 5th
April the following year.
ISAs
were introduced by the present Government in April
1999 as a replacement for both Tax Exempt Special
Savings Accounts (TESSAs) and Personal Equity Plans
(PEPs). They have now become a permanent fixture in
the savings world.
NB...In 2004 ISA managers were
prevented from reclaiming taxation on dividends
thereby reducing the tax efficiency of the stocks
and shares component of ISAs, however, they are
still recognised as a very tax-efficient savings
vehicle.
Whatever your financial advice requirements are,
you can be assured that Ashton Hoyle are well
positioned to provide an innovative answer and we
look forward to speaking to you on any financial
matter. Contact us now
to see how we can help.
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