The 1 July marked the introduction of New-ISAs (or NISAs) giving savers something of a Brucie-bonus. We first heard about NISAs in George Osborne’s Budget speech back in March – a speech packed full of changes to savings and pensions.
So what has changed? Since ISAs were introduced there have been two annual limits which increase each year. The first was the total amount you are allowed to save in one tax year – up until 1 July that limit was £11,880. The second limit was on how much of your ISA could be saved in cash (as opposed to stocks and shares), being half of the total limit, £5,940.
From 1 July all existing ISAs have become NISAs where the annual limit has increased to £15,000. This is the only limit imposed; meaning that if you wanted to invest the full £15,000 in cash then you can do so. As a result NISAs will be a much more flexible investment tool, offering savers the choice as to how much they want to invest in cash or stocks and shares (or both) each year within a tax free wrapper.