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Types Of Mini V Maxi
If you are going to invest in an ISA, you
will need to choose whether you invest in a Maxi or
a Mini ISA.
When choosing which type of ISA to go for, it is important
that you establish your investment needs at the outset,
as you will not be permitted to swap from one type to
another in the same tax year. Any good financial adviser
should be able to help you achieve this.
Maxi ISAs
Maxi ISAs have an overall annual subscription limit
of £7000 in any tax year. If you wish, the entire
£7000 investment can be taken up with stocks,
shares or other such financial instruments. However,
you also have the option of investing up to £3000
in cash and up to £1000 in life assurance, so
long as you do not exceed the overall £7000 limit.
Mini ISAs
Three different mini ISA investment options are available:
stocks & shares, cash and life assurance. As with
a maxi ISA, the total value of your contributions into
mini ISAs must also not exceed £7000 in any tax
year.
One of the benefits of mini ISAs is that they allow
you to go to different providers for each of the elements.
One of the drawbacks is that there is a £3000
limit on the amount you are permitted to contribute
to a stocks and shares mini ISA.
If you wish to invest more than this sum in stocks
and shares within your ISA wrapper, you should go with
a maxi ISA. There is also a £3000 limit on your
contributions to a mini cash ISA in any tax year and
a £1000 limit on your annual contributions to
a life assurance mini ISA.
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