ISAs
NB - Legislation relating to Individual Savings Accounts is subject to change.
Individual Savings Accounts (ISAs) were introduced in 1999 and replaced PEPs and TESSAs. They are available to all UK residents over 18 years of age, 16 years of age for Cash ISAs. They benefit all taxpayers, as any income or capital gains received from investments held within an ISA do not have to be declared to the tax man.
ISAs can invest in cash or longer term investments like stocks and shares (including unit trusts, investment trusts, Open Ended Investment Companies, some fixed interest securities, or any share quoted on a stock exchange recognised by the Inland Revenue.)
Investment Limits
Investment is limited to an allowance of £7,200 per annum (2008/09 tax year).
Up to £3,600 of the allowance can be saved in cash with one ISA provider. The remainder of the £7,200 can be invested in stocks and shares with either the same or a different provider.
See Also:
Self Select ISAs