How will NISAs work?
From 1 July 2014, you can choose to pay in:
£15,000 to a cash NISA and nothing to a stocks & shares NISA.
£15,000 to a stocks and shares NISA and nothing to a cash NISA.
A combination of amounts between a cash and a stocks & shares NISA, up to the overall annual limit of £15,000.
You can only open one cash NISA and one stocks and shares NISA to put new money into each tax-year but you can also open other NISAs to transfer old ISAs into. This is the same rule as for current ISAs.
Since 1st July more money has gone into Cash ISAs that Stocks and Shares ISAs. When considering investing in a Stocks and Shares ISA a careful study of the investment charge is required. By investing directly it is possible to incur initial charges of up to 4% of the investment plus annual costs in the regi0n of 1% to 1.5%. These charges can be greatly reduced by investing through a middleman.