Simpler Rules for ISAs
From 6 April 2008, ISA rules are changing, simplifying the scheme and making life easier for savers and investors.
The key change to the scheme is that there will no longer be a time limit on ISA tax exemptions. This means that ISAs are now really the ideal long-term investment and savings vehicle ensuring that you can withdraw any money in an ISA at any time, tax-free.
Other changes means that when child trust finds mature, it is possible to put the money into an ISA to preserve the money’s tax free status. The rules for PEPs (Personal Equity Plans) and ISA accounts will be brought into line meaning that the two can be merged if you hold both forms of account. It is expected that many providers will be promoting the consolidation of PEPs and ISAs in the coming year.
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