Many Mature Times readers will be aware that Chancellor, George Osborne, announced changes in his last budget to the Individual Savings Accounts (ISAs) that we have all known for many years.
These changes came into effect on July the first this year. So what do these changes mean?
In essence the new rules mean that you can now invest a tax free sum of a maximum £15,000 per person per year into a New Individual Savings Account (NISA), an increase of £3,120 per annum per person.
Previously there were rules on how you could invest your money, which meant that only half of your annual ISA allowance (£5,940) could be invested in a cash ISA, while the full amount could be invested into a stocks and shares ISA.
These rules have now been abolished meaning you can invest part, or all, of your annual allowance into either a cash NISA, or a stocks and shares NISA.
The other major change in the rules relates to how you will be able to transfer money between your ISAs – previously you could move money from a cash ISA into a stocks and shares ISA, but not the other way.
Under the new NISA rules, you can now move money both ways. If you are unsure as to how the new NISA rules affect you then we would urge you to consult an Independent Financial Adviser.