Q Can I invest the full £10,200 in cash?
A No. Although Isa limits have been extended there are still separate
limits for cash Isas and stocks and shares Isas. The maximum that can be
invested in a cash Isa is £5,100 – up from the current limit of £3,600.
Again, those who are under 50 will be able to take advantage of this raised
limit from next April.
Q If I take out a cash Isa, can I also invest in a stocks and shares Isa?
A The limits may have changed but the principle behind Isas remains the
same. After October 5, those investing the maximum in a cash Isa will be
able to invest the rest of their allowance in a stocks and shares Isa. In
other words, once they have £5,100 in a cash Isa, they can invest a further
£5,100 into stocks and shares.
Q I am not 50 until later this year. When can I take advantage of these
increased limits?
A As long as your 50th birthday falls within this tax year – that is,
before April 5, 2010 – then you will be able to take advantage of these new
allowances from October 6 this year.
Q I am over 50, but I’ve already taken out an Isa this year. Will I be able
to top up my Isa?
A In the vast majority of cases you will simply be able to pay more
into these Isa accounts, up to the new limits. So if you already have £3,600
in an Isa, you should be able to pay a further £1,500 into it. Then, if you
don’t have a stocks and shares Isa already, you could invest a further
£5,100 into one of these savings plans before April next year. (Or
alternatively you could put £6,600 into stocks and shares if you don’t “top
up” the cash Isa.) If you have invested the full £7,200 in stocks and
shares you will be able to put a further £3,000 into this account – or put
this money into a cash Isa instead.
Q …
Read the original article at Telegraph
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