Joslin Rhodes
17:09, Sun 5th February 2012

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ISAs

You may choose to invest in two separate ISAs each tax year; a cash ISA and a stocks and shares ISA. You can invest up to £5,340 in a cash ISA with one provider. The remainder of the £10,680 can be invested in stocks and shares with either the same or a different provider. For example, you can chose to save £1,000 in a cash ISA with one provider and £9,680 in a stocks and shares ISA with a different provider. Alternatively you can invest a maximum of £10,680 in a stocks and shares ISA if you have not invested any money in a Cash ISA.

Investors will have no personal liability to income tax on income arising from investments held within an ISA. Neither will investors have any personal liability to capital gains tax on gains made on investments held in an ISA. Equally it should be pointed out that capital losses occurring within an ISA cannot be used to offset capital gains realised elsewhere. No details of ISA investments, income received or gains realised need be included on your annual tax return. ISAs may not be written on a joint basis or in trust.

Any previous Personal Equity Plans are now classed as stocks and shares ISAs and previous mini-cash ISAs and/or Tessa-only ISAs (TOISAs) and the cash components of any maxi ISAs are now classed as cash ISAs.  You are able to transfer existing cash ISAs to a stocks and shares ISA, but you are not able to transfer stocks and shares ISAs to cash ISAs.