New ISA Rules for the Tax Year 2008 - 2009

The favourable tax treatment of ISAs means that, from time to time HM Revenue and Customs may review the rules governing them. From the 6th of April 2008 ISAs are changing, giving you the opportunity to take advantage of your annual allowance.

The main changes are:

• The annual ISA investment allowance will be raised from £7,000 to £7,200 per tax year. Up to £3,600 of that allowance can be saved in cash with one provider. The remainder of the £7,200 can be invested in stocks and shares with either the same or a different provider.
• ISA savers will still be able to invest in two separate ISAs each tax year. They will simply be called a cash ISA and a stocks and shares ISA. Mini and maxi ISAs will no longer exist.
• ISA savers will be able to transfer money they have previously saved in cash ISAs to a stocks and shares ISA.
• Mini cash ISAs, TESSA-only ISAs (TOISAs) and the cash component of a maxi ISA will automatically become cash ISAs.
• Mini equity ISAs and the equities component of a maxi ISA will automatically become stocks and shares ISAs.
• All Personal Equity Plans (PEPS) will automatically become Stocks and Shares ISAs.

Make sure you’re getting the best value possible from your tax efficient savings allowance by ringing our Customer Contact Centre or visiting your local branch.

 

 

Cheshire Building Society is authorised and regulated by the Financial Services Authority (registration number 206102).