Budget 2014 - The New ISA
Submit Articles Back to Articles
government announced at Budget 2014 that from 1
July 2014, ISAs (Individual Savings Account) will be
reformed into a new simpler product, the ‘New ISA’
(NISA) with equal limits for cash, and stocks and shares.
From 1 July the
NISA limit will be £15,000 - the biggest ever
increase to ISA limits.
1 July 2014 the overall NISA limit for 2014-15 will be
£15,000, an increase of £3,480 from the 2013-14 limit.
NISA will also offer you the option to save your whole
NISA allowance of £15,000 in cash, stocks and shares,
or any combination of the two.
example, from 1 July you could choose to pay in:
to a Cash NISA and nothing to a Stocks and
to a Stocks and Shares NISA and nothing
to a Cash NISA
to a Cash NISA and £10,000 to a Stocks and
to a Cash NISA and £5,000 to a Stocks and
combination of amounts between a Cash and Stocks
and Shares NISA, up to the overall annual limit
1 July 2014
6 April and 1 July 2014, the total amount that you will be able to
a Cash ISA is £5,940. If you also have a Stocks and Shares ISA, you
be able to pay into that account, but the combined amount you pay
Cash and Stocks and Shares ISAs must not exceed £11,880.
1 July 2014, your existing ISA will automatically become a NISA, with
limit and more flexibility. Thereafter you can then add further money
your Cash or Stocks and Shares NISA, up to the new £15,000 limit.
simpler NISA for cash and stocks and shares
1 July 2014, you are able to hold cash tax-free within your
Shares NISA, if you wish, and your provider allows this. However,
may prefer to hold separate accounts for cash, and stocks and shares.
existing savings from a Stocks and Shares
NISA to a Cash NISA
1 July 2014, any money you have in a Stocks and Shares NISA can
to a Cash NISA.
you wish to make a transfer from 1 July 2014, you should approach
of the Cash NISA that you wish to transfer your funds to, who
the provider of your existing Stocks and Shares NISA to arrange
the transfer. You
should not withdraw sums from your Stocks and Shares NISA
in order to deposit it into a Cash NISA yourself. If
you do, any amount
that you pay in will count as a fresh payment against the overall
transfer rules will apply, depending upon when you paid into
and Shares account. But if you put money into your Stocks and
between April and July 2014, this sum must be transferred as a
amounts from previous years may be transferred as a whole or in
you wish, however not all ISA providers will allow part transfer, so
you should check
with your provider first.
About the Author
© Crown Copyright. Material taken from HM-Treasury.
Reproduced under the terms and conditions of the Click-Use Licence.
Follow us @Scopulus_News
Article Published/Sorted/Amended on Scopulus 2014-03-19 14:07:39 in Tax Articles