PEPs and ISAs

An ISA is a tax-free savings account, protecting your money from the taxman and allowing you keep all the proceeds received without paying any income or capital gains tax.

ISAs (Individual Savings Accounts) replaced Personal Equity Plans (PEPs) in 1999, although any balance held in PEPs maintain the same tax benefits. Some changes were recently made regarding ISAs & PEPs, and came into effect from 6th April 2008...

• When ISA's were first announced they were guaranteed to run for 10 years. They are now set to run indefinitely.
• The annual ISA allowance is increasing from £7,000 to £7,200, of which up to £3,600 can be invested into a cash ISA.
• The concept of Maxi and Mini ISAs has been removed. This has been simplified to just stocks and shares ISAs and cash ISAs.
• Former cash ISAs can be transferred into stocks and shares ISAs if appropriate.
• From 6 April 2008 the PEP and ISA regulations will be aligned and all PEPs will become stocks and shares ISAs.

How Many ISAs Can I Have?

Each tax year, you can only invest up to the maximum ISA allowance for that year. However, you can still hold on to ISAs from previous tax years, so you may end up with several ISAs in total.

What Happens If I Need to Get My Money Out?

Most ISA's allow you to withdraw amounts of £500 or more from your investment at any time (providing a minimum of £500 remains invested). Alternatively, you can sell all your units to fully encash your investment.

Summary

There is no doubt that ISAs represent a very tax-efficient way of saving your money, whilst retaining access to your funds if required. The value of the tax advantages may of course depend on your individual circumstances, and we strongly recommend talking over your options with us, to help make the best decision for you.

Get the full story

Robert Bruce Associates can offer you specialist, helpful and clear advice on ISA investments, to help you make an informed choice. Our qualified advisors will ensure any decision is made only once you have all the facts in hand, and only as a result of establishing your personal wishes and criteria.

Why not call us today?

Get the most out of your retirement...
Call us today on 0845 838 7377