According to research from TSB, only 15% of people used their full ISA allowance in 2013/14. As announced at the 2014 Budget, the ISA rules have now changed.
It’s worth knowing exactly how much you can hold in an ISA in the coming year and when the new rules kick in. Here’s a short recap.
The new rules: ISAs and the New ISA (NISA)
The rules have changed significantly this year, giving savers greater flexibility and a more generous upper limit. Cash ISAs and stocks and shares ISAs have merged, to create a New ISA (or NISA). The NISA offers a £15,000 annual limit and there is no restriction on the amount that can be held in cash.
The new rules mean that:
- Investors can transfer assets into the new-style ISA from either a cash ISA or a stocks and shares ISA
- Transfers can be made from July 1 onwards, which is when the £15,000 limit kicks in (the limit will be £11,880 until then)
- The junior ISA investment limit is £4,000 in 2014/15 (up from £3,720 in 2013/14).
Those who save the maximum amount for the next seven years could see their savings rise to just over £110,000, potentially generating interest of more than £7,000.
Talk to us about your savings
If you’re thinking about saving in an ISA for the first time or transferring existing funds to a NISA, give us a call. We can advise you on the best investment strategy for you and help you get to grips with the new rules. The sooner you get started the more you’ll save, so speak to one of our advisors today.
Call UWM on 0113 231 0202 or email mail@uwm.co.uk to get started. Jonathan Myers is a Director at Leeds Accountants Urquhart Warner Myers who helps business owners achieve their business and personal goals. He can be found on Google+
