Following the Chancellor’s announcement in the March 2014 Budget, New ISAs (NISAs) are now available.
NISAs are broadly tax-free savings plans, available for cash or investment. One of each type of NISA can be bought per tax year and with effect from 1 July 2014, the maximum amount that can be invested this tax year is £15,000.
This can be held in cash, investments or a combination of the two. Unlike the previous ISA allowance, where the maximum that could be held in cash was half of the overall contribution limit, the NISA has no restrictions as to the cash / investment ratio.
With effect from 1st July, investors’ existing ISAs have been converted to NISAs. As with old style ISAs, it continues to be possible to transfer a Cash NISA into an Investment NISA, retaining the tax efficient status. It is also now possible to transfer Investment NISAs into Cash NISAs.
For further information and advice on utilising your allowances contact Springfield Financial Services Limited on 01772 729742.