July 2, 2014 From 1st July 2014 all ISAs will automatically become New ISAs (NISAs). It sounds rather underwhelming, but in fact this is great news for savers. The new system will allow you to save up to £15,000 a year tax free in your NISA. The previous limit was only £11,520 and only half of this could be used for cash. The NISA will also give you much more flexibility as to how you use up your limit. Previously you were able to move cash ISAs into Stock and Shares but not the other way around. Under the new scheme you will be able to have any combination of cash and stocks and shares, and you will be able to move money between the two types of ISAs. Any new ISAs opened between 6th April and 30th June this year will automatically become a NISA and from 1st July you will be able to top up your NISA to the new £15,000 limit. From 1st July the rate for Junior ISAs will also increase to £4,000. Ordinarily, cash gifts by parents to their children that yield more than £100 per year in interest income would be taxable as the parent’s income. If you missed the boat with Child Trust Funds (the scheme closed in January 2011) you can set up a Junior ISA for your child, with all money invested and interest earned tax free and belonging to the child. However, they will not be able access it until they are 18. The treasury has also hinted at peer-to-peer lending schemes qualifying for the NISA allowance, but this is unlikely to come into effect until 2017.