This year’s New ISA allowance
So you’re ready to start saving or investing, but how much money can you actually put into your New ISA during 2014/15? Here’s a rundown of your New ISA allowance for the current tax year...
So what is a New ISA allowance? Simple. It’s the total amount the Government lets you save or invest in a New ISA each tax year. The current limit for 2014/15 is £15,000.
You can split this between the two different types of New ISA — so you could have both a New Cash ISA and a New Stocks and Shares ISA at the same time, as long as you stay within your New ISA allowance.
You can use your whole allowance and save or invest the full £15,000 in either a New Cash ISA or a New Stocks and Shares ISA. This New ISA limit is set by the Government and usually increases every year in line with inflation.
Remember, you can split the allowance too. So for example, you could invest £10,000 in a New Stocks and Shares ISA, also known as a New Investment ISA, and put £5,000 in a New Cash ISA. Alternatively you could save £7,000 in a New Cash ISA and invest the remaining £8,000 in a New Investment ISA.
Bear in mind that tax treatment depends on individual circumstances and tax law may change in the future. With stock market investments, the value of your investments can fall as well as rise and you could get back less than you have paid in.
Scottish Friendly only offers investments into a New Investment ISA.
Our investment New ISAs start from as little as £10 a monthFind out more about Scottish Friendly New ISAs>
Junior ISA rules
The current Government rules mean that you can put a total of £4,000 into a Junior ISA during the 2014/15 tax year.More about your Junior ISA allowance
New ISA allowance FAQs
Q. What is my total New ISA allowance this tax year?
A. Your total allowance is £15,000 for tax year 2014/15.
Q. How much can I save in a New Cash ISA?
A. You can save up to £15,000 in a New Cash ISA in 2014/15 with another ISA manager. Less any amounts subscribed to a New Stocks and Shares ISA.
Q. How much can I invest in a New Stocks and Shares ISA?
A. You can invest up to the £15,000 in a New Stocks and Shares ISA, also know as a New Investment ISA. Less any amounts subscribed to a New Cash ISA.
Q. Can I only have one kind of New ISA?
A. No – you can have both a New Cash ISA and a New Stocks and Shares ISA at the same time, as long as you stay within the annual limit.
Q. Are the limits different if I want a Junior ISA?
A. Yes. You can save or invest up to £4,000 in a Junior ISA in 2014/15. Again, you can split that between a Cash Junior ISA and a Stocks and Shares Junior ISA if you like. Customers can invest in an adult New ISA and a Junior ISA each tax year.
No advice has been provided by Scottish Friendly. If you are in any doubt as to whether a plan is suitable for you, you should contact a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk. Advisers may charge for providing such advice and should confirm any cost beforehand.