Mini and Maxi ISAs
In addition to the three different components of an ISA,
there are also two different versions of an ISA. These are
known as Maxi and Mini ISAs. You must always establish which
version of an ISA that you are contributing to when you
first start a plan, as this may affect the amount you can
invest in the future.
During each tax year you may invest in one ISA or you may
decide to spread your money across Mini ISAs, where you
can have a maximum of three. Whether or not you have more
than one version of an ISA, the annual investment limit
remains the same at £7,000 for the current tax year.
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 equity
investments 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.
If you do not make contributions to the maximum limit
under any of these investment components, the balance cannot
be carried forward to another tax year or transferred to
a different ISA component.
