As many of you already know investors and savers now have a ‘new’ ISA allowance of £15,000 to invest since 1 July 2014. Effectively the new ISA allowance if for the current 2014/15 tax year so if you have already used some of your ISA allowance for this tax year, you will have to deduct that amount from the £15,000 allowance to se how much more you can use within the tax efficient wrapper until April 2015. The other new thing to consider is that you can use all the £15,000 allowance for just cash, or stocks and shares, or any mixture of both. Previously if you had an ISA allowance of £11,880 as an ISA allowance only £5,940 could be saved within a cash ISA.
Investors can also transfer freely between a cash ISA and a stocks and shares ISA or vice versa, while previously investors could only transfer from a cash ISA to a stocks and shares ISA, and not the other way around. There is now no difference between a cash ISA and a stocks and shares ISA, there is now just one allowance. The new rules also apply to all ISAs, even those taken out in previous years.
So all existing ISAs became new ISAs from July 1st, without the investor having to do anything.
Platforms have responded to Budget changes to the ISA regime by improving rates on cash and introducing new cash savings products. FCA rules published last month bar platforms from offering unbreakable term deposits of more than 30 days. If you want to look at maximising the tax efficiency of your savings Enable’s IFAs in Bishops Stortford are here to help.
Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 – Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE