1. Home
  2. UK Finance Discussions
  3. ISA investments from April 2006

ISA investments from April 2006

Can somebody please explain to me why the limits for investing in max and mini ISA's from April 2006 is being reduced. For example, you can currently invest 3K cash in a mini ISA, however, April 2006, the maximum amount of cash you can invest is 1K.

Seems daft to me, when I thought the idea is that people should be encouraged to save money. Or is this just another way for the Government to cream more taxes off one of the most heavily taxed countries in the world. How much more do they want of our hard earned cash?

Reply to
Dudley
Loading thread data ...

I don't think it has been reduced. The original ISA format had an investment cap of 3K (or was it 5K) after the first year (I think). Every year the ISA limit of 7K (3K/3K1K for minis) has been extended - I don't think that the

2006 tax year limit has been announced yet - so it may be that some people are working on the pessimistic assumption that it won't.

Thom

Reply to
Thom Baguley

Here is the answer from the horses mouth (well the Inland Revenue website actually).

formatting link
The formatting will probably be lost when I post as it's pasted in HTML.

How much money can I put into ISAs?

In each of the tax years 2001/2002 to 2005/2006 you can put in up to 7,000 in total (plus any capital sum from a matured TESSA - see page 22). You can then put in up to 5,000 in each subsequent tax year from 2006/2007. A tax year runs from 6 April to 5 April the following year.

Each year the money can be put into either

2001 - 2006 Later years one Maxi ISA total 7,000 total 5,000 of which these amounts can be put into

stocks and shares up to 7,000 up to 5,000 cash up to 3,000 up to 1,000 life insurance up to 1,000 up to 1,000

or Mini ISAs for stocks and shares up to 3,000 up to 3,000 cash and up to 3,000 up to 1,000 life insurance up to 1,000 up to 1,000

Reply to
Dudley

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.