Budget 2015: Flexible ISAs

New fully Flexible ISAs will allow savers from Autumn 2015 to withdraw from their Cash ISA and reinvest into it in the same year without any loss of tax benefits.

This flexibility is not intended for Stocks and Shares ISAs.

There will be a consultation on the inclusion of crowd-funded equities in Flexible ISAs, available via platforms such as Crowdcube, Seedrs and Syndicate Room. It should be noted that the ISA eligibility of peer-to-peer loans still remains unconfirmed. It may be possible to include ISDX Growth Market (formerly, PLUS) stocks in ISAs, although this detail needs to be confirmed. Bonds issued by a co-operative society will be ISA eligible in future.

Help to Buy ISA

First time home buyers looking to save for their deposit could get tax relief on their savings under the proposed Help to Buy ISA from autumn 2015, which is a form of Cash ISA available for four years. It will not be possible to subscribe to both a Cash ISA and Help to Buy ISA in the same tax year.

The scheme will provide 25% tax relief on savings up to £12,000. Saving the maximum £12,000 would see the government add a further £3,000 to their savings, giving them £15,000 towards the purchase of their first home. The tax relief will be added when the saver buys the home.

Savings will be limited to a maximum single initial premium of £1,000 and regular savings of £200 each month. And to get the Government bonus, property values can be no more than £250,000 (£450,000 for properties in London).

Please note, this article is for information only and does not constitute investment advice. Past performance is not necessarily an indication of future returns; the value of investments and any income from them is not guaranteed and can fall as well as rise; pension rules and tax legislation are subject to change; we do not give tax advice. If you would like investment or pension advice on your individual circumstances, please do not hesitate to get in touch on 01392 875500 or info@SeabrookClark.co.uk

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