Nice to see you–to see you NISA!

Amongst all the major pension changes announced in the Budget you could have easily missed the fact that the ISA rules are also changing.

On 1 July 2014 the new rules relating to ISAs announced in March’s Budget announcement come into effect. The launch of the NISA is the biggest change to the ISA rules in 15 years. So – here goes – your five minute guide to the changes.

  • The limit has increased – from 1 July you can invest up to £15,000 into your ISA this tax year – this is an increase from £11,880. In practice many people stuck to the Cash ISA limit of £5,940 so that is quite an increase for most people.

     

  • You can hold cash in your Stocks and Shares ISA – if your existing Stocks and Shares ISA qualifies as a NISA (although the name will be staying the same) – this means that you can hold both cash and funds, within your ISA. Previously, you were allowed to hold cash temporarily within a Stocks and Shares ISA as long as you were going to invest it in funds.

     

  • More flexibility to transfer – from 1 July 2014 you’ll be able to transfer freely between Stocks and Shares ISAs and Cash ISAs, as many times as you like. However, you must transfer the whole current year holding each time.

     

    There are a load of other “what if” questions that you may have. We’ll tackle these in another blog post soon. For now that’s probably enough.

    As always, this information isn’t intended to constitute financial advice or suggest that a NISA is suitable for you. To get to the bottom of that thorny question you may need to sit down with an authorised financial adviser and get some personalised advice. Get in touch if you fancy a chat, a cup of coffee and, if you’re lucky, a biscuit or two!

  • Steve Clark

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