ISAs - New Rules and Opportunities

Author(s)
Alan Goggin

There are some dramatic changes to Individual Savings Accounts (ISAs). From 6 October 2009, anyone turning 50 by 5 April 2010 can already shelter £10,200 in their personal ISA allowance. From April 6 onwards this increased limit will apply to all aged over 18. Each tax year, up to £5,100 can be in cash. This has resulted in many clients selecting ISAs as their number one savings and investment account. The message is use it or lose it!

With an anticipated, ever increasing, amount of personal direct and indirect taxation, anything that offers virtually tax free growth and income must be considered seriously every year. Clients of the required age, who have already used this year’s maximum allowance (£7,200) have increased and topped up their schemes in the last few months.

Another key issue is that funds are now transferable from a cash ISA into a stocks & shares ISA. This has been especially important for clients who have been slightly nervous about investing over past years, but now feel the time is right. They can use cash ISAs deposited in previous years, to be invested immediately in investment ISAs, without affecting this year’s allowance. This has focused attention on deposit accounts which previously yielded 5%, 6% and even 7% and are now only offering 1% and 2% – some even less!

You can purchase an investment ISA which specifically excludes stocks & shares by asking for a portfolio to be created from a mixture of corporate bonds, deposit accounts and gilts. It is now possible to have all your ISAs under one umbrella, which makes it easier for reporting and analysing; and results in less paperwork! We recommend taking immediate advantage of our free portfolio review service – the cost is normally covered by the trail commission. This is already paid by you to the existing ISA company.

Alan Goggin
alan.goggin@birkettlong.co.uk

 

Birkett Long LLP is regulated by the Solicitors Regulation Authority. Birkett Long LLP is authorised and regulated by the Financial Services Authority.

This information is intended for general guidance only. Reference should be made to the appropriate adviser on any specific matters.

Media
BLong newsletter - February 2010

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