Mini and Maxi ISAs
If you are going to invest in an ISA, you will need to
choose whether you invest in a Maxi or a Mini ISA.
When choosing which type of ISA to go for, it is important
that you establish your investment needs at the outset,
as you will not be permitted to swap from one type to
another in the same tax year. Any good financial adviser
should be able to help you achieve this.
Maxi ISAs
Maxi ISAs have an overall annual subscription limit of £7000
in any tax year. If you wish, the entire £7000 investment
can be taken up with stocks, shares or other such financial
instruments. However, you also have the option of investing
up to £3000 in cash and up to £1000 in life assurance, so
long as you do not exceed the overall £7000 limit.
Mini ISAs
Three different mini ISA investment options are available:
stocks & shares, cash and life assurance. As with a maxi
ISA, the total value of your contributions into mini ISAs
must also not exceed £7000 in any tax year.
One of the benefits of mini ISAs is that they allow you
to go to different providers for each of the elements. One
of the drawbacks is that there is a £3000 limit on the amount
you are permitted to contribute to a stocks and shares mini
ISA.
If you wish to invest more than this sum in stocks and
shares within your ISA wrapper, you should go with a maxi
ISA. There is also a £3000 limit on your contributions to
a mini cash ISA in any tax year and a £1000 limit on your
annual contributions to a life assurance mini ISA.
