Great news for savers

Transcription

1 Important changes to your ISA allowance Great news for savers Your tax-free ISA allowance is increasing to 15,000 from 1 July 2014

2 Your new ISA allowance explained The Government recently announced that your ISA allowance will be increasing to 15,000 from 1 July ISAs will become known as New ISAs and they ll give you a greater degree of flexibility and an increase to your tax-free allowance. Returns FREE of personal tax ISAs and the New ISA are useful because they mean you don t pay personal tax on any returns you make from your savings and investments. Existing Police Mutual ISAs will automatically become New ISAs from 1 July So there s no need to wait to set one up.

3 What the changes mean to you Q. What can I invest during the 2014/15 tax year? A. You can invest up to 15,000 from 1 July 2014 a good thing for savers as any returns you make within an ISA are free from personal tax. Q. What happens before 1 July 2014? A. Up to 11,880 can be invested in a Stocks and Shares ISA but only 5,940 in a Cash ISA. Q. So what will happen on 1 July 2014? A. Currently only half of your allowance can be saved in a Cash ISA but your full allowance can be invested in a Stocks and Shares ISA. From 1 July 2014 your 15,000 allowance can be split however you choose. Q. Can I transfer or switch my savings easily? A. From 1 July 2014 transferring and switching can now happen freely between a Cash ISA and a Stocks and Shares ISA or vice versa. Q. What if I don t use all of my 11,880 by 1 July 2014? A. Don t worry, this allowance runs throughout the whole tax year (6 April 2014 to 5 April 2015), increasing to 15,000 on 1 July Q How will I know how much of my allowance I ve used? A. If you choose to open an ISA with us, we ll keep you updated throughout the tax year. Don t lose out! Remember, if you don t use your allowance you lose it! However, you will get a new tax-free ISA allowance for the next tax year.

4 Two types of New ISA available Not only has your ISA allowance increased but, from 1 July 2014, there will be two types of New ISA: New Cash ISA This is a bank savings account where the interest is added tax free. New Stocks and Shares ISA This allows you to invest in a wider range of investments (including cash) in a tax-efficient way. Of course, depending on what you choose to invest in, the value of your New Stocks and Shares ISA can go down as well as up and your original investment is not necessarily guaranteed.

5 More choice Making the most of your allowances Even if you have a Cash ISA, you can open a New Stocks and Shares ISA as well. You can invest in one or both of these New ISAs. New ISAs are designed to be flexible. You can take your money out and transfer to another provider when you want. How it works Your New ISA allowance can be allocated between both a New Cash ISA and a New Stocks and Shares ISA in any way you like. Here are some examples: Invest the full 15,000 in a New Cash ISA Invest 5,000 in a New Cash ISA Invest 10,000 in a New Stocks and Shares ISA Invest the full 15,000 in a New Stocks and Shares ISA

6 No need to wait It s business as usual for us as our Guaranteed ISA (a Stocks and Shares ISA) allows you to make the most of your full 15,000 ISA allowance. No need to wait to set up your ISA Any ISA you open automatically becomes a New ISA on 1 July No need to wait to transfer any existing ISAs You can transfer any current ISAs you hold to us at any time, without affecting your current tax-year allowance. Keep updated Go online at policemutual.co.uk/nisa to register for updates over the coming months about our future plans for New ISAs. Don t forget! You can make the most of your allowance with our Guaranteed ISA

7 Keep updated Register with us for future New ISA updates and find out how we can help you make the most of your ISA allowance. Register and find out more Call us on or visit policemutual.co.uk/nisa Police Mutual Assurance Society Limited is an incorporated friendly society authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered office: Alexandra House, Queen Street, Lichfield, Staffordshire WS13 6QS. For your security, all telephone calls are recorded and may be monitored.