[an error occurred while processing this directive]

2.2.9 Individual Savings Accounts (ISAs) Introduced 6th April 1999 to replace TESSAs and PEPs. The investments are exempt from income and capital gains but it has not been possible for managers to reclaim the 10% tax deducted from equity dividends since 6 th April 2004. The Government have stated that the accounts will be available for a period of 10 years. Offered by banks, building societies, insurance companies and investment houses. Investors must normally be aged 18 (16 for cash mini ISAs) and UK resident for tax purposes. Investments can only be made in single names, not jointly. There are three types: 1. Maxi ISA through one provider each year. 2. Mini ISA through up to three providers each year, one for each category of investment, no two components with one provider. 3. TESSA only ISA only the capital, not interest, from a maturing TESSA can be invested in addition to the usual limits. Must be invested within 6 months of maturity. Investment Options Overall maximum contribution is £7,000 in each tax year until 5th April 2006 and £5,000 in subsequent tax years. 1. Mini ISA Cash £3,000 until 5th April 2006       £1,000 thereafter     Insurance £1,000 each tax year     Stocks/shares £3,000 each tax year           2. Maxi ISA Cash £3,000 until 5th April 2006       £1,000 thereafter     Insurance £1,000 each tax year     Stocks/shares balance up to £7,000 until 5th April 2006       balance up to £5,000 thereafter       3. PLUS TESSA only account from a maturing TESSA CAT standards (charges, access and terms) are optional but if not upheld this must be notified to investors. Cash ISA standards: 1. Charges no one-off charges. 2. Access withdrawals within 7 days. can withdraw less than £10 3. Terms interest rate no less than 2% below base rate. upward change in interest within one month of change to base rate. no other conditions e.g. notice or frequency. Insurance ISA standards: 1. Charges annual charge no more than 3% of fund. no other charges. 2. Access minimum premium no more than £25 monthly or £250 single. 3. Terms no surrender penalty. after three years surrender value to be at least a return of premium. surrender value should be asset value. Equity ISA standards: 1. Charges total charge no more than 1% of fund p.a. no other charges. 2. Access minimum saving no more than £50 monthly or £500 single. 3. Terms securities listed on EU stock exchanges. gilts and government bonds allowed. for OEICS, unit trusts and investment trusts, 50% must be invested in securities listed on EU stock exchanges. no split share classes.

[an error occurred while processing this directive]