• the annual ISA investment allowance is £7,200
  
• all of your clients' allowance can be invested in stocks and shares, or can be split by investing up to £3,600 in cash and the remainder of the £7,200 in stocks and shares with either the same or a different provider
  
• clients can transfer money saved in previous years' cash ISA holdings to stocks and shares ISAs without affecting their current year's allowance
  
• mini and maxi ISAs no longer exist. Instead, clients can invest in two separate ISAs each tax year; a cash ISA and a stocks and shares ISA
  
• mini cash ISAs; TESSA-only ISAs (TOISAs); and the cash component of a maxi ISA are now cash ISAs
  
• mini stocks and shares ISAs and the stocks and shares component of a maxi ISA are now stocks and shares ISAs
  
• all Personal Equity Plans (PEPs) are now stocks and shares ISAs
  

ISA regulatory changes - your questions answered

What happened to existing ISAs?
Mini cash ISAs, Tessa-only ISAs (TOISAs) or cash components in a maxi ISA, have been reclassified as 'cash ISAs'.

Mini stocks and shares ISAs and the stocks and shares component of a maxi ISA have been reclassified as 'stocks and shares ISAs'.

Will clients have to sign any new forms to continue paying in to their ISA?
No - as long as they:

• saved in that ISA in the previous tax year
• signed a continuous application form for that ISA, and
• have not already saved in another ISA of the same type (cash or stocks and shares) during the current tax year.

However, if they transferred their ISA to a new provider, and didn't sign a continuous application form, or if they didn't save in their ISA in the previous tax year then they will have to complete a new ISA application form.

Can they transfer from their cash ISA to a stocks and shares ISA?
Yes, they can now transfer some or all of the cash  they have saved in previous tax years without affecting their annual ISA investment allowance.

They can also transfer money saved in the current tax year. Such transfers must be the whole amount saved in that tax year in that cash ISA up to the day of the transfer. These transfers are subject to the terms and conditions of their ISA providers.

If they transfer part/all of their cash subscription to a stocks and shares ISA, can they make any further payments to their ISA in the same tax year?
Yes - provided they haven't already used up their annual ISA investment allowance of £7,200.

For example, if they had saved £2,000 in a cash ISA and then transferred it to a stocks and shares ISA they would be able to make further investments totalling £5,200 in the year. They can either invest all of the £5,200 in a stocks and shares ISA or they could save up to £3,600 in a cash ISA or a combination of both.

How do they transfer the money in their cash ISA to a stocks and shares ISA?
Exactly the same way as they would transfer their ISA to another provider.

Ensure that your client does not withdraw the money from their cash ISA or funds and try to reinvest it as they will lose the associated tax allowance.

They will be out of the market while the transfer takes place. They may suffer loss of income and/or market growth from market movement in this period, but this could also work in their favour. This would naturally depend upon their fund choice and future market conditions which cannot be predicted in advance.

Can they transfer the monies they have invested in their stocks and shares ISA to a cash ISA?
No, the rules only allow the transfer of monies saved in a cash ISA to a stocks and shares ISA but not vice versa.

Please be aware that the value of tax savings and eligibility to invest in an ISA will depend on individual circumstances, and all tax rules may change in the future.


Please be aware that the value of tax savings and eligibility to invest in an ISA will depend on individual circumstances, and all tax rules may change in the future.