ISAs explained
In the 2010/11 tax year, each person has an overall annual investment limit of £10,200, of which up to £5,100 can be invested in a cash ISA.
- cash ISA – you can invest up to £5,100 with one provider
- stocks and shares ISA – you can invest the remainder of the £10,200 total allowance with the same or a different provider
Who can open an ISA?
Under the ISA rules, the minimum age for investing in a cash ISA is 16. For a stocks and shares ISA it’s 18. To invest in an ISA you must be resident in the UK for tax purposes. The UK does not include the Channel Islands and Isle of Man.
Will ISAs always be tax-free?
The government has promised to keep ISAs indefinitely. The tax treatment of ISAs may change in the future.
Transfer rules
You can transfer the money saved in a cash ISA to a stocks and shares ISA, even if it was saved in previous tax years, without affecting your annual ISA allowance. If you want to do this, you’ll need to speak to your new ISA provider.
NS&I Direct ISA
The NS&I Direct ISA is a cash ISA. We don’t offer a stocks and shares ISA.
