The annual ISA investment limit for 2015/16 is £15,240 (all of which may now be placed in a cash ISA). The cash ISA rates for the Junior ISA (JISA) is £4,080.
More importantly the legislation allowing transfers from Child Trust Fund accounts into JISAs is now in force, as is that allowing spouses and civil partners to inherit a deceased spouse’s/civil partner’s cash ISA.
On 1 July 2015, the ISA investment eligibility rules were relaxed to allow a wider range of securities, including investment trusts which operate in the peer-to-peer loan market.
ISAs remain one of the simplest ways to save tax, with nothing to report or claim on a tax return. The inflation-linked annual limit may be modest, but over time substantial sums can build up, if a person had maximised their ISA investment since they first became available in April 1999, they would by now have placed over £150,000 largely out of reach of UK taxes.
From 2016/17, the new personal savings allowance may make cash ISAs redundant for many savers, as they will be able to receive interest tax-free from ordinary deposits.
For clients who are one of the many that fall into that category, they may want to think about switching their cash ISA to a stocks and shares ISA if their dividend income exceeds the new dividend allowance. The rules now allow an investor to switch in either direction whenever they wish.
If you would like to learn more about the benefits of having a cash ISA, or to find out how to take advantage of the great cash ISA rates that are available, please contact us.
We are independent financial advisors (IFA) based in Eastbourne in East Sussex. We serve clients in Eastbourne, Lewes, Seaford, Bexhill, Hastings, Newhaven, Crowborough and Uckfield throughout East Sussex.
