Individual Savings Account (ISA) - £10,200 New ISA Allowance
Reasons to buy online today:
1. Earn £25 cashback when you invest in an ISA today.
2. Mix and match, all the top ISA managers in one place.
3. The UK's easiest online application.
4. We take 0% commission on every fund you purchase.
5. Enjoy simple, online valuations and dealing.
Need help investing?
Or, maybe you already have some ISA funds? Transfer your existing ISA to Investor Profile today for £25 cashback and easy online account management.
More info
New ISA Contribution limits for 2009/10
As of 6th October 2009 anyone over the age of 50, or anyone that will turn 50 before 5th April 2010, can invest up to a maximum £10,200 in an ISA.
The contribution limit for the under 50's until 6th April 2010 will remain at £7,200. After 6th April 2010 every eligible investor can invest a maximum £10,200 each year.
For more information please scroll down to our ISA Contribution Rules below.
Why should you invest in an ISA now?
Well nobody likes paying tax. The problem is that this economic crisis has meant the Government is looking into all the different ways it can generate more income. The best way for it to do that is to raise taxes, and these include income tax and capital gains tax.
Investing in an ISA now will protect your cash from both income and capital gains tax, which could increase whether it's a Labour or Conservative government.
Even if you don't want to invest you can still make use of your ISA allowance by investing your money in cash. Remember once this tax year ends you will have lost this year's allowance for good and can only make use of the allowance available in future years.
How can we help you?
At Investor Profile we offer an online Stocks and Shares ISA for easier ongoing management.
The benefits you can enjoy with Investor Profile include:
- Complete online management for less paperwork and hassle
- Invest online in minutes with your debit card
- Buy, sell and switch online quickly and easily
- More money for you with our 100% commission rebate
- Transfer your existing plans to consolidate and simplify
An ISA is a wrapper that you can use to protect your investments from the taxman. Any gains you make on investments within the ISA are free of capital gains tax and any savings are free of income tax.
As a nation it feels like we get taxed on just about everything we do. So if there is any way to avoid paying tax on your savings and investments you should probably make the most of it.
Each financial year (6th April to 5th April the next year) you are given an allowance of £7,200 (£10,200 for those over 50 years of age from 6 October 2009 and for under 50's from 6 April 2010). You can choose whether to use this or not. Once the year ends however, you can’t use the previous year’s allowance so it’s important to make the most of it while you can.
For a Cash ISA there are a range of providers (usually banks and building societies) that can offer good terms and rates of interest.
For a Stocks and Shares ISA you can invest in funds that suit your needs and although generally considered a more long term investment you can access the money any time you need to. Although there are various methods of investing, an online ISA can give you the control and flexibility you need to make the right choices at the right time.
ISA Contribution Rules...
From 6 October 2009 you can invest a total of £10,200 each tax year into an ISA if you are over 50 years of age or will be 50 years of age before 5th April 2010.
You do not have to wait for your birthday before you invest the full £10,200 ISA subscription. If you are turning 50 at some point before 5th April 2010 then you can invest up to £10,200 at any point after 6th October 2010 as part of your 2009/10 subscription allowance.
For under 50's you can invest a total of £7,200 in the 2009/10 tax year, then £10,200 each year from 6th April 2010.
There are only two types of ISA – a Cash ISA and a Stocks and Shares ISA.
You can invest up to £5,100 in a cash ISA each tax year if you are over 50 (after 6 October 2009).
Under 50's can invest up to £3,600 in a Cash ISA in the 2009/10 tax year then up to £5,100 each year from 6th April 2010.
Over 50's can invest up to £10,200 in a Stocks and Shares ISA each tax year (from 6 October 2009).
Under 50's can invest up to £7,200 (this tax year) then £10,200 (each year from 6th April 2010) as above in a Stocks and Shares ISA.
You can open one Cash ISA and one Stocks and Shares ISA in each tax year so long as the overall limit is not exceeded, e.g. someone aged over 50 could invest £4,000 in a Cash ISA and £6,200 in a Stocks and Shares ISA.
All PEPs are now Stocks and Shares ISAs.
All Mini Cash ISAs, TESSA-only ISAs, and the cash component of Stocks and Shares ISAs from before April 2008 have become Cash ISAs.
ISAs can only be held individually and cannot be held as a joint account, and account holders must be 18 or over (16 or over if you are only investing in a Cash ISA), and a UK resident.
Tax levels, bases or reliefs referred to are those currently applying but are subject to change. The tax treatment of investments will depend on the individual circumstances of the investor.
£25 cashback is payable on investments over £10,000. Investments over £7,000 will receive £10 cashback.
