ISAs just got NISA! No really, they did! Don’t run away now because of that rubbish headline, OR because you think this is going to be a long and boring post – it’s not. It’s going to be so simple that even I can understand it! Whoop!
So here’s the deal. At the moment, should you be sensible enough to have an ISA, you can save up to £11,880 tax free. Yes, thanks HMRC for that wonderfully convenient number for us to remember. But wait – there’s more on the inconvenient number front – only £5,940 of that can be in a cash ISA. Though you can have as much in a stocks and shares ISA as you like, up to…wait a minute, I wrote it down here somewhere…yes, up to £11,880. Minus whatever’s in your Cash ISA, of course. Bored? Confused?
Me too. But the good news is that it’s all getting much simpler. Like, properly, sensibly simple. From 1st July, this is the deal…
- ISAs will now be called New ISAs
- There will still be two types of NISA available – cash and investment – and you can have one of each per year
- You can save up to £15,000 tax free per year
- This can be split in any way you like (or not at all) between your Cash and Investment NISAs
- If you have an ISA it will automatically switch over to being a New ISA
And that, my friends, is that! Perfectly simple and straightforward. One lovely, easy number to remember. And you don’t even have to do anything to your current ISA – it just sort of magically happens at midnight on Monday. Hurrah! Bish bash bosh! Job done! Bob’s yer Uncle! (Unless he’s about to keel over leaving £15K, in which case he’s very much MY uncle.)
I did my research on this on the Scottish Friendly website – they have a brilliant downloadable guide which explains everything really well, and also a short video (below) which talks through the New ISAs. It’s well worth a look if you want to find out more about the New ISA, or in fact about savings and investments in general, in a surprisingly non-stuffy fashion. AND they have a cool timeline thing at the bottom which is kinda fun, even if it does make me feel ancient! And if you do Twitter, they can be found here.
**Disclaimer – this is a sponsored post, written in collaboration with Scottish Friendly**