Individual Savings Accounts Changes

From 6 April 2014 the overall ISA savings limit will be increased from £11,520 to £11,880 of which £5,940 can be invested in cash.
From 1 July 2014 ISAs will be reformed into a simpler product, the ‘New ISA’ (NISA) and all existing ISAs will become NISAs.

NISAs

From 1 July 2014 the overall annual subscription limit for these accounts will be increased to £15,000 for 2014/15. Special rules apply if investments are made before 1 July 2014.
Investments for 2014/15 cannot exceed £15,000 in total. Savers will also be able to subscribe this full amount to a cash account (currently only 50% of the overall ISA limit can be saved in cash).

Under the NISA, investors will also have new rights to transfer their investments from a stocks and shares to a cash account.
There are also changes to the rules on the investments that can be held in a NISA, so that a wider range of securities to include certain retail bonds with less than five years before maturity can be invested. In addition, Core Capital Deferred Shares issued by building societies will become eligible to be held in a NISA, Junior ISA or Child
Trust Fund (CTF).

These measures are part of a broader package of changes to support savers. In particular they will increase the choice and flexibility available to savers in tax advantaged products.

Junior ISA and CTF

The annual subscription limit for Junior ISA and CTF accounts will increase from £3,720 to £3,840 from 6 April 2014. From 1 July 2014 the amount that can be subscribed to a child’s Junior ISA
or CTF for 2014/15 will also be increased to £4,000.
The Government has decided that a transfer of savings from a CTF to a Junior ISA should be permitted at the request of the registered contact for the CTF. It is expected that the first transfers will be possible by April 2015.

If you have any questions please do not hesitate to contact us for advice on 0121 231 7080.