A new ISA for a new era
As part of a number of changes announced in the Budget 2014 we were waiting for the normal nominal increase in the annual ISA allowance, as we have become accustomed to seeing in recent years.However, for the 2014-15 ISA year and beyond a New ISA or “NISA” becomes available from the 1st July 2014, with a greater level of flexibility available as well as a substantial increase in the available contribution to £15,000 a year, which is an increase of £3,480 on the previous allowance.
Not to be confused with the local convenience store, the NISA flexibility will offer the option to save your whole NISA allowance of £15,000 in cash, stocks and shares, or any combination of the two.Also, for those clients who have already been saving into ISAs over many years, the new flexibility will mean that those historic holdings could also be moved over into cash or stocks and shares. With no complicated rules in the background this means that an investor can really have the flexibility to invest their ISA holdings as they wish.
This flexibility is also useful in seeking to meet the asset allocation and risk profile needs of clients as they move through the different seasons of life. For example, during the accumulation phase of life it may be appropriate to adopt a strategy that involves the NISA holdings being allocated to more growth orientated funds, such as stocks and shares, whilst in retirement it might be appropriate to reduce risk as monies are required by moving to cash or other income producing assets. In this way we can seek to meet client objectives and provide a coherent and balanced strategy within investment planning. At Taylor Patterson we have produced a Guide to Investing that explains in more detail how we seek to plan with our clients and help them take control of their future. For more information, contact Jason Street on 01772 555073 or Jason.street@taypat.co.uk.
