Isas just got Nisa

With effect from today, the new Isa rules come into play. The result is a transformation in the way Isa schemes work, providing much more flexibility along with significantly larger tax-free allowances.

Under the New Isas (or Nisas as they are being called), the amount you can save each year has been raised from £11,880 to £15,000. For couples, this means £30,000.

You also now have much more flexibility in many ways. Firstly, you can now save up to £15,000 in a cash Isa for the 2014-15 tax year, an increase of £9,060 from the previous allowance of £5,940.

Secondly, the rules are now much more flexible about transferring between cash and equity Isas. You can now transfer from a stocks and shares Isa to a cash Isa, and vice versa – and as many times as you like. Up until now, you could only transfer from a cash Isa to a stocks and shares Isa.

The new rules also offer a wider investment choice for investors, including short-dated bonds and peer-to-peer loans.

In addition, whilst you have always been able to hold cash in a stocks and shares Isa, any interest was paid net of basic rate tax. From today, any interest on cash held in a stocks and shares Isa is completely tax-free.

The Junior Isa’s limit has also increased to £4000.

These major changes to the Isa rules, with the greater limits and the flexibility provided, might present an opportunity for you to reassess your investment portfolio.

< back to News & Views

News Feed


Why did all the Little Chefs disappear?

At its height, Little Chef had 439 restaurants across the UK but just two decades later they were all gone.

News & Views

April 10, 2024

How to use the new tax rules efficiently in the new tax year

We look at the changes to the tax rules at the start of the new tax year and how to make sure your savings and investments are as tax efficient...
Read more