In the current tax year 2007/8 you can save up to £7,000 in an Individual Savings Accounts, more commonly referred to as ISAs. But this figure is on the increase for the 2008-9 tax year. Here, money4dentists Richard Lishman explains:
"Introduced on 6th April 1999, ISAs replaced the defunct Personal Equity Plans, the Government introduced them as a tax efficient incentive to encourage savings. There are two types of ISA, mini and maxi.
"An ISA comprises an investment in cash of up to £3,000, and other investments (such as stocks and shares) up to a value of £4,000. Mini ISA holders can take two each tax year, but one must consist of a cash investment and the other stocks and shares. Maxi ISA holders are limited to one a year, and it must solely be made up of stocks and shares.
"In the March 2007 Budget, the then Chancellor, Gordon Brown, announced an increase in the allowances for the 2008-9 tax year. From 6th April 2008, the cash limit of an ISA will increase to £3,600 and the stocks and shares proportion is set to rise to £7,200. The distinction between a mini and maxi ISA will be abolished to simplify the process."
money4dentists is proud of its record and reputation for providing effective, practical and money-saving financial guidance to the dental profession.
To find out how money4dentists can help you to save money, or for more information on money4dentists' range of financial services, please call 0845 345 5060.