ISA: The changes so far
Posted on 12. Dec, 2009 by admin in General
Since the Individual Savings Account was introduced in 1999 many changes have been made in their structure.
In 2007, the difference between mini and maxi ISA was abolished. Also the annual allowance for Individual Savings Account (ISA) was increased.
In accordance with the new rules effective from April 2008, the maximum investment was increased from 7,000 to 7,200 pounds a year and maximum cash that can be held in an ISA was increased from 3000 to 3,600 pounds. The new limits, because they are divisible by 12, make it easier for the customers looking to spread the investment throughout the year. This is something that PEP and ISA Managers’ Association (PIMA) had been lobbying the Treasury for. Another change was that it is now possible to convert cash ISA to stock ISA though the reverse was not allowed.
In the year 2008, more changes were made. The facility to transfer was allowed with a few restrictions. Changes in subscription limits were also announced in 2007 budget and also again in the budget of 2009 which will be effective from the tax year of 2010.
At the time of introduction the ISAs were a wonderful financial tool and with all the amendments they have become an excellent saving instrument for the masses. Especially with todays low isa rates.