need help with isa information!! please?

Question

hi. is it possible to have multiple isa's? my parents currently have 1, whcih they can put 3000 into a year. Is it possible to have a second? have the rules changed with the budget?

cheers for your help

Answer 1

You can only have one £3000 ISA per year, therefore Mum and Dad can have one each. these are Cash Mini ISA's, you can save up to £7000 each with a Maxi ISA, these are usually a bit more complicated, as they are equities.

Answer 2

For each National Insurance code (i.e. each individual), there is an ISA allowance of £7000 each tax year. Note: TAX year, not calendar year!

Your parents can have two - one each.

Within the £7000 limit, there is a further restriction on the amount you can hold in a "cash ISA" - this is £3000 and if you opt to hold cash in your ISA, it will be considered a "mini-ISA".

Essentially, your options are these:

£0-7000 in stocks and shares (maxi-ISA).

£0-3000 in cash AND/OR £0-4000 in stocks and shares (2x mini-ISA).

The allowances have changed, after Mr Brown's budget, but this will not happen overnight. I think it's the 2008-2009 tax year, at which point you'll be able to invest up to £3600 in a cash ISA and £7200 in total - I think.

Good luck; I hope this helps.

Answer 3

I opened one today - the Barclay's one that gives 6.5%!
You can only have one ISA and you can put up to £3000 per tax year into it. I've just squeezed into this year's tax year (I was able to put the full £3000 in), so from next month I can start adding to it, up to a maximum of another £3000.

Answer 4

yes only one with a max of £3000 per year - and if you take out anything once you have reached your 3k, you cant then put some back in until the next financial year.