If you save in the form of a cash ISA, you won’t pay any Capital Gains Tax or Income Tax on the interest you earn on the account. There are also ISAs that are invested in stocks and shares. The Government allows you to open one of each, every financial year, subject to the maximum allowance. At N&P, we offer a range of ISAs to meet our customers’ differing needs. Give us a call if you’d like to know more.
With effect from 6th October 2009, the ISA limits will be raised to £10,200 of which £5,100 can be saved in a cash ISA.
This applies in the 2009/10 tax year to people who will be aged 50 or over on or before 5th April 2010. For other ISA customers, the subscription limits remain unchanged for this tax year. The ISA allowance is currently £7,200 and you can put all of this amount into a stocks and shares ISA or put up to £3,600 in a Cash ISA.
Read N&P's Questions & Answers on the new ISA limits.