An Individual Savings Account (ISA) is a great way to make the most of your tax-free savings limit and save for the future.
With an ISA you do not pay UK tax on the income you receive from your savings or investment.
From 6 October 2009 anyone born on or before 5 April 1960 has an annual ISA investment allowance of £10,200. Up to £5,100 of that allowance can be saved in cash with one provider. The remainder of the £10,200 can be invested in stocks and shares with either the same or another provider.
For those born after 5 April 1960, the annual ISA investment allowance is £7,200. 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 another provider.
From 6 April 2010 the limit will be £10,200 for all eligible ISA investors. References to legislation and taxation are based on Standard Life's understanding of law and HM Revenue & Customs November 2009. ISAs attract tax reliefs, which the Government may alter in future. The value of these reliefs to you depends upon your own personal financial circumstances
You can invest in 2 separate ISAs in any one tax year:
Here are some ISA options at a glance:
| Born on or before 5 April 1960 | Born after 5 April 1960 | |||
|---|---|---|---|---|
| Option 1 | Save up to a maximum of £5,100 in cash and the balance of the £10,200 allowance in stocks and shares. | Save up to a maximum of £3,600 in cash and the balance of the £7,200 allowance in stocks and shares. | ||
| Option 2 | Put the maximum annual ISA allowance of £10,200 in stocks and shares. | Put the maximum annual ISA allowance of £7,200 in stocks and shares. | ||
| Option 3 | Save up to a maximum of £5,100 in cash then transfer this to stocks and shares and save a further £5,100 in cash. | Save up to a maximum of £3,600 in cash then transfer this to stocks and shares and save a further £3,600 in cash. | ||
