Archived News

Changes to tax-free savings

9 April 2008

Changes to tax-free ISA accounts are on the way on 6 April this year, following announcements made in last year's Budget speech by then Chancellor, Gordon Brown.

These include allowing individuals to save as much as £3,600 in a cash ISA and up to £7,200 in an equity ISA. The overall limit, however, is £7,200 – up from the old ceiling of £7,000.

Most important, savers will now be able to switch their money from cash ISAs to Equity ISAs, but if they switch the other way, they'll lose their tax-free benefits. This is designed to encourage greater uptake of Equity ISAs, which offers savers some new flexibility. It should be noted too, that equity investments are a riskier option, although they also offer the potential for greater gains.

While ISAs are an important aspect of financial planning for anyone looking to the future, they are only part of the picture. For a complete review of your finances, including retirement and inheritance planning, speak to one of our investment experts.