ChatterBank0 min ago
Budget changes to ISA rules
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I'm trying to figure out the recent proposed changes. It seems that in future you can convert cash ISAs to Equity ISAs but not the other way around. Am I correct in understanding that the maximum annual cash you can put in a Mini ISA is still �3,000 or has that limit been increased to cover the full annual �7000 allowance?
Also, if you need to take income from either equity ISAs, or Cash ISAs, which would provide the best benefit, or will there be no difference to a standard rate taxpayer.
Also, if you need to take income from either equity ISAs, or Cash ISAs, which would provide the best benefit, or will there be no difference to a standard rate taxpayer.
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I think you are right about the conversion and cash limits.
As to taking income, you will probably get a higher immediate return from a cash ISA. However in the longer term, as the capital value of your equity ISA grows (you hope), the income in form of dividends should grow too.
What you could do is take the income from the equity ISA and top it up a bit by taking a small amount of capital out as well, hoping that capital growth will make up for what you have withdrawn.
As to taking income, you will probably get a higher immediate return from a cash ISA. However in the longer term, as the capital value of your equity ISA grows (you hope), the income in form of dividends should grow too.
What you could do is take the income from the equity ISA and top it up a bit by taking a small amount of capital out as well, hoping that capital growth will make up for what you have withdrawn.
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