ISAs - The Rules Explained and the New Limits

1. There are 2 types of ISA – a Cash ISA, and a Stocks & Shares ISA (our ISA is one of these). ISAs include former TESSAs and PEPs.


2. In any tax year (ending 5 April), you can save in both types of ISA, but must stick to one provider for each.


3. You can save a maximum of £7200 (old limit) each tax year between these ISAs, but only a half of the maximum (£3600) can go into the Cash ISA.


4. If you do not use the limit, you cannot carry it forward to the next tax year.


5. If you cash in your ISA, you cannot reinvest it later. This applies equally to the current year’s subscription.


6. You can transfer ISAs to a new provider, but you cannot switch a Stocks & Shares ISA into a Cash ISA. For old tax years, there is a lot of freedom – but the“one provider” rule affects the current year.


7. The overall limit is going up next April 6 to £10,200 (but only £5,100 in a Cash ISA).


8. If you are age 50 or over on 6 October (or reach 50 by 5th April 2010), then you benefit from the increase this year. But beware the one provider rule!