NISA limits set to increase
The New ISA (NISA) was announced by the Chancellor as part of the 2014 Budget announcements and came into effect on 1 July 2014. The NISA introduced major changes to the old ISA system by introducing equal limits for cash and stocks and shares. This allows savers the ability to transfer funds from stocks and shares ISAs to cash ISAs allowing far greater flexibility.
The NISA has a far more generous annual investment limit of £15,000 an almost tripling of the pre 1 July 2014 cash limit of £5,940 and a significant increase from the old £11,880 allowance for stocks & shares ISAs. These limits are available until the end of the 2014-15 tax year.
For the 2015-16 tax year, the limit will increase to £15,240. The Junior ISA investment allowance for the tax year 2015-16 will be raised to £4,080 (from £4,000) as will the Child Trust Fund subscription limit.