ISA's Page Two

Who can invest in an ISA?

Anybody over the age of 18 is able to save using an ISA as long as they are a UK tax resident. You can take out an ISA even if you are not currently working.
You and your partner are both able to set up an ISA as you get separate ISA allowances. You cannot take out an ISA with somebody else as each ISA must be individually taken out. However, you can subscribe to an ISA on behalf of someone else, for example as a gift.

How much can I invest?

There is an overall maximum investment limit for ISAs, and separate limits for each element.

Tell me more about the Cash element of the ISA

You can invest up to £3,000 cash in an ISA for the 2002/2003 tax year, however, April's 2009 bubget has an increase annual limit for individual savings accounts to £10,200 up to £5,100 of which can be saved in cash.

These higher limits will be available to people aged 50 and over from 6th October 2009 and availabe to all from 6th April 2010.

If you have any cash sitting on deposit in the bank or building society it may be advantageous to place some of this money (having left yourself an adequate emergency cash fund) into a cash ISA, because money on deposit with a bank or building society is normally taxed at your highest rate of income tax. Cash ISAs can include some National Savings products, cash unit trusts and bank and building society accounts and all interest will be tax-free.

Tell me more about the Life Assurance element of the ISA

You are able to invest £1,000 in Life Assurance through an ISA each year. This can offer valuable protection for your family in the event of death.

Tell me more about the Investment element of the ISA

The investment element of an ISA can be in funds such as unit trusts, OEICs or Investment Trusts. You may also choose to invest directly into shares or corporate bonds. If you take out an ISA with cash and life assurance elements, your remaining allowance can be in an investment ISA. You may prefer to invest your whole allowance in an investment ISA.

Some of the products and services offered by IFAs may not be regulated by the FSA. The value of investments can go down as well as up. Past performance is no guarantee of future performance.

'authorised and regulated by the Financial Services Act’ '189117'