| 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
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