Savings and Investments

ISAs and PEPs

Notes

1. 'Stakeholder' cash and medium term products can be held in your ISA, and from 6 April 2006 you will still be able to hold an insurance policy in your ISA, but the separate 'Mini insurance ISA component' will end and instead, depending on the type of insurance policy you hold, your policy will now qualify for the;
   
   
   • Mini ISA cash component - (limit remains at £3,000)
   • Mini ISA stocks and shares component (limit increased to £4,000)
   • Maxi ISA - with a limit of £7,000, but no more than £3,000 in cash.
   
   
2. Investments in ISAs are free of income tax and capital gains.
3. Those aged 16-17 can invest up to £3,000 only, either in the cash element of a maxi-ISA or in a cash mini cash ISA.
4. ISAs allow you to take your money out at any time without losing tax relief and furthermore you are not required to declare income and capital gains from ISA savings.

Personal Equity Plans (PEPs)

Although PEPs are no longer available, sums already invested continue to score for tax breaks.