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Basic ADVFN Video Help
ADVFN HomeHelpISA centreIntroduction to ISA4. How much can be invested?
Introduction to ISA
  1. What is an ISA?
  2. How does an ISA compare with other tax free forms of investment?
  3. What are the different types of ISAs?
  4. How much can be invested?
  5. Who is eligible for an ISA?
  6. What does “tax-free” mean?
  7. Which ISAs are the most popular?
  8. What can a cash ISA be invested in?
  9. What can a Life Insurance ISA be invested in?
  10. What kinds of stocks and other investments can an ISA be invested in?
  11. How do PEPs and TESSAs affect an ISA?
  12. What is a CAT Standard?
  13. What kind of return can I expect from an ISA investment?
  14. Who will provide your ISA and how about charges?
  15. How do i make investments and transfers?
  16. Summing up ISAs for 2002/2003

4. How much can be invested?

The normal annual maximum is £5,000, of which up to £1,000 can be in cash, up to £1,000 in life insurance and the balance in stocks and shares. As a concession, the maximum is raised to £7,000 until April 2006 with the cash limit being £3,000 and life assurance limit remaining at £1,000.

If you open a Mini plan for cash and/or life assurance you can invest in stocks and shares through a further Mini plan but if you want to invest more than £3,000 in stocks and shares you can only do so in a Maxi plan.

Summary table:

For a maturing TESSA, you may invest the capital proceeds into a “TESSA-only ISA” provided this is done within 6 months. The TESSA only ISA does not affect the amounts you may invest in your MAXI or MINI ISA.