{"id":948,"date":"2014-07-03T08:39:11","date_gmt":"2014-07-03T08:39:11","guid":{"rendered":"http:\/\/www.newsfin.co.uk\/news\/?p=948"},"modified":"2014-07-03T08:39:11","modified_gmt":"2014-07-03T08:39:11","slug":"new-individual-savings-accounts","status":"publish","type":"post","link":"https:\/\/www.absolutefinance.net\/wordpress\/?p=948","title":{"rendered":"New Individual Savings Accounts"},"content":{"rendered":"

Providing you with increased simplicity and greater flexibility<\/strong><\/p>\n

Individual Savings Accounts (ISAs) have been around since 1999, providing a tax-efficient wrapper for savings and investments. However, in the recent Budget, the Chancellor, George Osborne, promised to increase the simplicity and flexibility of ISAs. As of 1 July 2014, there is now a single ISA which has been named the new ISA, or ‘NISA’, which provides a bigger tax break than ever before and more flexibility about how it can be used.<\/p>\n

All ISAs have now become NISAs, including any ISAs opened from 6 April 2014 to 30 June 2014.<\/p>\n

How do NISAs differ from ISAs?<\/strong>
\n\u2022 Greater flexibility\u00a0\u2013 You can invest your whole allowance in stocks and shares or cash, or any mixture of the two<\/p>\n

\u2022 Freedom to transfer\u00a0\u2013 You can transfer existing ISAs from stocks and shares into cash, or the other way around<\/p>\n

\u2022 Improved tax efficiency\u00a0\u2013 You can now earn tax-efficient interest on cash held in a NISA. Previously, with the exception of a Cash ISA, any cash held within the stocks and shares element of an ISA was subject to a 20% charge on the interest earned<\/p>\n

Generous tax break <\/strong>
\nThe ISA allowance has now been increased from \u00a311,880 to \u00a315,000 for the 2014\/15 tax year. For any couple, that means they can put aside \u00a330,000 for this tax year, which is a generous tax break. This means you can now save another \u00a33,120 into either cash or stocks and shares in the current tax year. The amount that can be paid into a Junior ISA for the 2014\/15 tax year has also increased from \u00a33,840 to \u00a34,000. Do bear in mind that whilst the NISA does allow a generous amount to be sheltered from tax during your life, the total amount forms part of your estate on death and so could be subject to 40% tax.<\/p>\n

Moving your existing investments <\/strong>
\nYou also now have the full flexibility of moving your existing investments in a Stocks & Shares ISA to a Cash ISA, or vice versa. You should not withdraw sums from your Stocks & Shares account yourself in order to deposit it into a Cash NISA, or the other way around. If you do, any amount that you pay in may count as a fresh payment against your overall limit of \u00a315,000.<\/p>\n

NISA subscription limit <\/strong>
\nIt is worth noting that if you have paid into a Cash or Stocks & Shares ISA since 6 April 2014, you will not be able to open a further NISA of the same type before 6 April 2015. You may however make additional payments\u2013 up to the \u00a315,000 NISA subscription limit \u2013 into your existing account(s).<\/p>\n

Increased flexibility<\/strong>
\nAs of 1 July 2014, there is now increased flexibility in the way that you can use your ISA allowance.<\/p>\n

You can now allocate:<\/strong><\/p>\n

\u2022 the full \u00a315,000 in a Stocks & Shares ISA
\n\u2022 the full \u00a315,000 in a Cash ISA
\n\u2022 any combination of amounts between a Stocks & Shares ISA and a Cash ISA up to the new limit<\/p>\n

NISA limits<\/strong>
\nFor example, from 1 July you could choose to save or invest:<\/p>\n

\u2022 \u00a315,000 to a Cash NISA and nothing to a Stocks& Shares NISA
\n\u2022 \u00a315,000 to a Stocks & Shares NISA and nothing to a Cash NISA
\n\u2022 \u00a35,000 to a Cash NISA and \u00a310,000 to a Stocks& Shares NISA
\n\u2022 \u00a310,000 to a Cash NISA and \u00a35,000 to a Stocks & Shares NISA \u2013 a combination of amounts between a Cash and Stocks & Shares NISA, up to the overall annual limit of \u00a315,000<\/p>\n","protected":false},"excerpt":{"rendered":"

Providing you with increased simplicity and greater flexibility Individual Savings Accounts (ISAs) have been around since 1999, providing a tax-efficient wrapper for savings and investments. However, in the recent Budget, the Chancellor, George Osborne, promised to increase the simplicity and flexibility of ISAs. As of 1 July 2014, there is now a single ISA which […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3,128],"tags":[],"_links":{"self":[{"href":"https:\/\/www.absolutefinance.net\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/948"}],"collection":[{"href":"https:\/\/www.absolutefinance.net\/wordpress\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.absolutefinance.net\/wordpress\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.absolutefinance.net\/wordpress\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.absolutefinance.net\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=948"}],"version-history":[{"count":0,"href":"https:\/\/www.absolutefinance.net\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/948\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.absolutefinance.net\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=948"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.absolutefinance.net\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=948"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.absolutefinance.net\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=948"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}