ISA changes for new tax year

The amount of money you can place in an Individual Savings Account (ISA) changes from 6 April with each persons annual ISA allowance increasing to £7,200.

The destinction between Mini and Maxi ISAs will be removed with all ISAs being reclassified as either a Cash ISA or a Stocks and Shares ISA. You can save up to £3,600 in a Cash ISA. The maximum you can invest in a Stocks and Shares ISA will be £7,200 less any money you have paid into a Cash ISA.

You will also now be allowed to transfer any money held in a previous years Cash ISA into a Stocks and Shares ISA, without affecting your current allowance. If you still have a PEP (Personal Equity Plan) from the 1990s it will be renamed an ISA without affecting your annual limit for the tax year 2008/09.