New ISA NISA 15k Starts Today

New ISA NISA 15k Starts Today.

As confirmed in the Chancellor's Budget in March 2014, new rules for tax privileged Individual Savings Accounts (New ISA or NISA) start today.

What are the new ISA rules?

• £15,000 adult NISA yearly allowance
• £4,000 junior ISA (JISA) yearly allowance
• Mini Cash ISA and Mini Stocks and Shares ISA disappear - you can now have any mix or proportion of NISA money in stocks and shares or cash
• Existing ISAs can be topped up to the new £15,000 limit

Comment

Simpllification for savers is key.  Gone are the old complex rules.  No need to to worry whether you are using your full ISA allowance in stocks and shares or you are going to use 50% of your allowance in Cash ISA and 50% allowance in Stock ISAs.

The Downside That They Do Not Tell You:

• ISA's and indeed now NISAs are not Inheritance Tax Free - if you pass away they form part of your estate for calculating inheritance tax.
• You cannot put a NISA in trust.
• ISA, now NISA, savings can be means tested for the care fees means test.
• Investor Protection for Stock backed NISAs is just £50,000.  It is not a cash bank account i.e. £85,000 protection limit per perosn and it is not an insurance investment i.e. unlimited protection for 90% of the value.