ISAs - The Regulations
On the 6th April 2008 a number of changes were made to the way Individual Savings Accounts (ISAs) work.
The Government has pledged that ISAs will be available indefinitely and that the overall annual investment limit for the 2008/2009 tax year has been raised to £7,200.
The terms “Mini and Maxi ISAs” will no longer exist and will either become simpler Cash or Stocks & Shares ISAs.
You can invest £7,200 in full in a Stocks and Shares ISA, or up to £3,600 may be invested in a cash ISA with the with the remainder of the £7,200 limit available for investment in a stocks & Shares ISA
For Example:
| Stocks and Shares ISA |
|
Cash ISA |
|
Total Allowance |
| £7,200 |
|
£0 |
|
£7,200 |
| £6,000 |
|
£1,200 |
|
£7,200 |
| £3,600 |
|
£3,600 |
|
£7,200 |
Transfers from a Cash ISA into a Stocks and Shares ISA
If you have saved in a cash ISA in previous tax years you will be able transfer some or all of that money to a Stocks and Shares ISA without affecting your current annual investment allowance. Transfers from Stocks & Shares ISAs to a Cash ISA is not permitted
The Reyker ISA Service
Reyker offers a Stocks and Shares ISA service in to which you can invest up to £7,200.
With Reyker you make the decisions. You decide when to buy and when to sell, what to buy and what to sell. You can deal through Reyker or you can deal through your own broker. You can even appoint your chosen broker to manage your investments for you. We have accounts with many broking firms and relationships with IFAs across the country.
If you have invested in one or more ISAs with another provider, then you can consolidate them by transferring some or all of them to Reyker. The advantage of this is that you can manage them as one portfolio and get just one consolidated valuation covering all your ISA investments.
Please note that there is no “cooling-off” period and that we do no need cleared funds in order to open an ISA for you.
PEPs
On 6th April 2008 all PEP accounts were re-branded as ISA accounts. All PEPs automatically become Stocks & Shares ISA.
If you held both a PEP and and ISA with Reyker then they will merge as a Stocks and Shares ISA.
Any uninvested cash held within a former PEP will be treated as if it were held in an ISA and Reyker will deduct a flat rate of 20% charge and pay it to HMRC.
If you held a PEP with another Provider then this will automatically become a Stocks and Shares ISA and you can consolidate them by transferring them as a ISA to Reyker.
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