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Important Information Regarding your Mini Cash ISA and/or TESSA Reinvestment ISA (tax year 2007 article)
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Important Information Regarding your Mini Cash ISA and/or TESSA Reinvestment ISA
The government has recently announced some changes regarding Individual Savings Accounts (ISAs), due to take effect from the start of the new tax year. The new terms will apply from 6 April 2008.
The changes announced by the government are:
- The government has confirmed it has a permanent/open ended commitment to ISAs.
- The Mini and Maxi designations are to be abolished so that from 6 April 2008 there will be just two types of ISA, a Cash ISA and a Stocks and Shares ISA. You will have the choice of saving in a Cash ISA and/or in a Stocks and Shares ISA each tax year.
- Current and/or previous tax year(s) subscriptions made to a Cash ISA will be able to be transferred to a Stocks and Shares ISA (as long as you are aged 18 or over).
- The overall ISA subscription limit is to be increased from £7,000 to £7,200 per tax year, and the Cash ISA limit is to be increased from £3,000 to £3,600 per tax year.
- PEPs are to be reclassified as Stocks and Shares ISAs.
This means that your Cash ISA subscription limit will be raised to £3,600 per tax year from 6 April 2008.
In the meantime, make sure you are making the most of your ISA and this year's tax-free allowance - the 2007 tax year deadline is 5 April, so top up your ISA today.
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