ISAs

ISAs (Individual Savings Accounts) are a tax efficient way of saving as any income and/or  capital gains are tax free. 

From 6 October 2009 anyone eligible to invest in an ISA who was born on or before 5 April 1960 (viz is over 50) will be able to invest up to £10,200 in an ISA in any one tax year.  The full amount can be invested in a stocks and shares ISA or up to £5,100 can go into a cash ISA and the balance into a stocks and shares ISA.   It seems that this increased allowance will be applied to anyone over 18 from 5 April 2010.  

The annual amount which can be invested in an ISA will be £10,680 for 2011/12. Juinor ISAs for under 18s (investing £3600 per year on their behalf) were introduced in autumn 2011, but children who are members of the Government's Child Trust Fund are not eligible for the Junior Isa. 

For a good simple description of ISAs, see http://www.traderhideout.com/resources/isas.html  

and for fuller details on the regulations see:  http://www.hmrc.gov.uk/leaflets/isa-factsheet.pdf

and for Junior ISAs see:  http://www.hmrc.gov.uk/budget2011/tiin6710.pdf