Please some one confirm 2008 ISA rules and tax benefit

m_c_s

Please can someone confirm the Mini and Maxi allowances for next year (from April 2008)?
Also are there any other benefits to ISAs other than capital gains tax avoidance (probably not the correct phrase) and tax free interest?
Are there additonal tax benefits for share based ISAs?


Thanks
MCS

noh

The distinction between mini and maxi will disappear. There will be an overall £7200 allowance. Maximum of £3600 allowed to be subscribed to a cash ISA. You will be able to transfer existing cash ISAs to S+S ISAs.

The advantages of holding an ISA are no capital gains to pay, no income tax,
If you hold coprate bonds in your S+S ISA tax is reclaimed. Saves paperwork as doesn't have to be declared on tax return. Value doesn't affect eligibilty to certain social security benefits. Income from ISA wont affect age allowance when 65. There's probably more!

Nigel

m_c_s

noh thanks
for some reason I thought there was still going to be a mini ISA with stocks and shares allowance of £4000. I guess this could still be within the overall allowance of £7200. However I thought you could also have a mini cash ISA of £3600 ..this gives a total allowance of £7600.. just a bit confused..

With regard to the transfer of existing cash ISAs to S+S I assume that does not count towards the allowance in that tax year? Also can this transfer be between providers?

noh

No the transfer of cash ISAs to S+S ISA doesn't count towards that years allowance and it can be to any provider.

http://www.hmrc.gov.uk/isa/bulletin40.htm

Nigel

m_c_s

thanks again,

Just wanted to plan ahead for myself and her in doors.
I will read the bumph you have linked to this afternoon.

MCS