Individual Savings Account (ISA)
ISAs have a limit on the amount that can be invested of £10,200 per annum, which can be made up of a cash element up to £5,100 or fully into investment funds for the maximum £10,200. The underlying investment, Unit Trusts or OEICs, are held within a ‘Tax Wrapper’. The benefits are that no personal taxation is liable either on income, if taken, or upon final encashment. The maximum contribution is to be increased with effect from 6 April 2011 to £10,680.
