Just a reminder that the the increased amount available for tax-free ISA savings accounts, which the Chancellor announced in the budget, came into effect on 1 July.
The new ISA products will (imaginatively) be called 'NISA's and from last Tuesday, the amount that can be invested in a tax-free account, will rise from £11,880 to £15,000 per year - invested between the 6 April and 5 April in any given year.
In addition, there is now more flexibility in the type of investment that can be held, with the full £15,000 allowed to be invested as cash, or as stocks and shares, or any combination of the two. Previously, a maximum of half the allowance could be invested as a less risky cash ISA.
I terms of a few tips:
- Any money held in stocks and shares ISAs opened during any tax year can also now be transferred into a cash NISA (although some providers might not allow partial transfers)
- ISA accounts opened since the start of the tax year can be topped up to £15,000... but a new NISA cannot be opened in addition
- Transfers between cash and stocks and shares NISAs can be made as many times as the account holder wishes