Individual Savings Allowance

(ISA)

Debbie Day

The Golden Rule

Use it or lose it!!

Current types of ISAs

• Cash ISA

• Junior ISA

• TOISA

• Stocks and Shares ISA

History of the ISA

• Introduced on 6 April 1999

• Replaced PEPs and TESSAs

• Complicated Mini ISA Maxi ISA and Life Insurance ISA

CASH ISA

• CASH Deposit similar to a general savings account apart from the tax free status

• Interest paid gross no tax to be paid

• No need to report on Tax Return

• Subscription Limit £5,760

Junior ISA

• Introduced on 1 November 2011

• For children born on or after 3 Jan 2011 or do not have a Child Trust Fund

• No access until child reaches age 18 when the child has access

• Subscription Limit £3,720

TOISA (Tessa only ISA)

• To allow the original capital from a TESSA (up to £9K) to be reinvested in a tax free form

• All capital in TESSA had to be transferred to TOISA

Stocks and Shares ISA

• Minimum age 18• Invest either as Lump sum or Regular

contributions• No personal tax on the income or profit your

investment earns• No need to include ISA holdings on your tax

return.• Subscription Limit £11,520

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If you had saved the maximum amount into a stocks and shares ISA since inception how much would you have invested?

Under age 50 in 2009/2010 £131,080Over 50 £128,080

Cash ISA Transfer

• Did you know that you can transfer your cash ISA into a Stocks and Shares ISA?

• If you have built up 2-3 years of Cash ISA allowance now is the time to speak to a financial adviser . The returns can be great and there are also Guaranteed products so you won’t lose a penny.

Any Questions?