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Key Points
Here is a quick summary of the key points:
- Be sure that you are opening the right type of ISA.
If you are likely to want to invest more than £3000
in stocks and shares in any one tax year, you should
open a Maxi ISA.
- You can only subscribe to one maxi ISA per tax year.
- You cannot subscribe to a mini ISA and a maxi ISA
in the same tax year.
- You can subscribe to up to three separate mini ISA
investing in each of the three different types of
investment (stocks and shares, cash and life assurance)
in the same tax year.
- You must not subscribe to more than one mini ISA
investing in the same type of investment in the same
tax year.
- Once you have subscribed to a mini ISA, no matter
what it invests in, you cannot change it to a maxi
ISA (or vice versa) part way through the tax year.
You must wait until the beginning of the new tax year
before swapping.
- You cannot switch between the different types of
investment in your ISA. However, you can hold cash
within the stocks and shares and/or life assurance
portion of a maxi ISA, or within a stocks and shares
and/or life assurance mini ISA, providing you intend
to use it to buy stocks and shares and/or life assurance.
However, this will not be tax free - a 20% charge
will be deducted from any interest generated by this
cash and paid to the Inland Revenue. Clearly this
does not apply to cash held in the cash portion of
a mini or maxi ISA.
- If you subscribe to a mini cash or life assurance
ISAs, no matter how little you subscribe, you will
only be able to open a mini stocks and shares ISA,
which is limited to subscriptions of £3000 in
that tax year.
- You can normally transfer your ISA to another investment
manager at any time. You can transfer some or all
of the value of your ISA contributions from previous
years, but to transfer any of the current year's contributions,
you must transfer the total value of any payments
you have made that year.
- Remember that the value of many forms of investment
can go down as well as up, and that past performance
should not be taken as a guide to future growth.
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