The main benefits of NISA changes, which were launched in July 2014, are:
1. It allows people to save or invest more – The overall limit for the 2014/15 tax year was £15,000, up from £3,480 compared to the previous year and marking the biggest ever annual increase in ISA limits. The amount which can be saved in a cash ISA rocketed from £5,940 to £15,000. For the 2015/16 tax year the limit will rise to £15,240.
2. The full ISA limit can now be used for savings – Previously, the amount people could save in a cash ISA was capped at half of the overall ISA limit and the remainder either had to be used for investing in Stocks and Shares or go unused. But now people can use the full allowance in cash, Stocks and Shares or any combination of the two.
To see last year’s ISA changes in closer detail, take a look at our ISA infographic.