A NISA way to grow your tax-efficient wealth

Individual Savings Accounts (ISAs) would be reformed into a much simpler product, the NISA. Furthermore, all existing ISAs would be automatically converted to a NISA.

Subscription limit

The current overall tax-efficient allowance set by the Government for 2015/16 is £15,240. It is possible for subscriptions to be split in any proportion between a new Cash NISA and new Stocks & Shares NISA. You now have more choice about where to put your money: invest it all in a Cash NISA, split it however you want between a Cash NISA and Stocks & Shares NISA, or invest the full tax-efficient allowance in a Stocks & Shares NISA.

Cash NISAs have the guarantee that you’ll never be left with less money than you paid in (subject to staying within the £85,000 Financial Services Compensation Scheme limit). Stocks & Shares NISAs don’t offer this security and are instead seen as a riskier investment, while offering the potential for great growth.

You don’t legally pay tax on any income or capital gains proceeds that you’ve made on your investments, and if you complete a tax return, you don’t even need to declare any interest or profits on it.

Increased flexibility in the way you use your NISA allowance

You can:

  • Invest the full £15,240 in a Stocks & Shares NISA
  • Invest the full £15,240 in a Cash NISA
  • Invest any combination of amounts between a Stocks & Shares NISA and a Cash NISA up to the £15,240 limit

Who can open a NISA?

You must be:

  • 16 or over for a Cash NISA
  • 18 or over for a Stocks & Shares NISA
  • Resident in the UK
  • A Crown servant (for example, diplomatic or overseas civil service) or their spouse or registered civil partner if you don’t live in the UK
  • You can’t hold a NISA with or on behalf of someone else.

To find out more about NISA’s including

  • Transferring NISA’s
  • Moving abroad
  • and what happens if you die

download our simple fact sheet. If you haven’t already please subscribe to our newsletter to download the fact sheet pdf.

Want to shelter £15,240 from tax, or £30,480 combined with your spouse or registered civil partner ?

If you’re thinking about saving or investing, we can help you understand your NISA options. To find out more about where you can invest in your tax-efficient NISA, please call us or use the contact form by clicking here.

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Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change. Tax treatment is based on individual circumstances and may be subject to change in the future. Although endeavours have been made to provide accurate and timely information, Goldmine Media cannot guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough review of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions.

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