DIY Investor Magazine
/
2015 Issue
25
George Osborne’s final Budget before the election
included a few sweeteners for investors and savers.
Chief among these were the new ‘Flexible ISA’ but there
was also help for those saving for a deposit on a first
home and savings tax relief.
While such markets might make life difficult for
individual Savings Accounts (ISAs) have long offered
tax efficient environments in which investors can hold
cash and stocks, shares, funds and qualifying bonds.
But the warning has always been that if subscriptions
are withdrawn from the account, they cannot be
reintroduced. That is the future benefit is lost.
Well that is about to change. The Chancellor has
announced that in future investors who withdraw funds
from the ISA will be able to replace the cash within the
same tax year, thereby maintaining the tax allowance.
STOP PRESS....
BUDGET BRINGS ISA FLEXIBILITY
THE CHANGES ARE DUE TO COME INTO EFFECT FROM
THIS AUTUMN. THE ANNUAL ALLOWANCE FOR 2015/16
WILL RISE TO £15,240.
The changes are due to come into effect from this
Autumn. The annual allowance for 2015/16 will rise to
£15,240.
There will also be a ‘help to buy’ ISA supporting first
time property buyers.
Here savings up to £12,000 will be topped up by the
government to the tune of £3,000 when the funds are
used to put a deposit on a home. Also welcome for
savers is a new ‘personal savings allowance’ on the first
£1,000 of income for basic rate tax payers and £500 for
higher rate payers. Those paying the highest band will
not benefit.
