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If you paid into an ISA insurance policy before 5 April 2005, you can continue paying into that policy after 5 April 2005. But if you also subscribe to either a Mini cash or a Mini stocks and shares ISA component you may have to rearrange your savings.

You pay no tax on capital gains arising on your ISA investments (losses on ISA investments cannot be allowed for Capital Gains Tax purposes against capital gains outside your ISA).

If you start an ISA in the UK and then go abroad, you cannot continue putting money into the ISA (unless you are a Crown employee working overseas or their spouse). However, you can keep your ISA and you will still get tax relief on investments held in the ISA. When you return, you can start putting money in again (subject to the normal annual limits).

What changed at 6 April 2005?On 6 April 2005 the ISA rules changed and from that date:
-new ‘stakeholder’ cash and medium term products can be held in your ISA
-the separate ‘Mini insurance ISA component’ ended and instead, depending on the type of insurance policy held, the policy qualifies for the:
-Mini ISA cash component – with an unchanged limit of £3,000 -Mini ISA stocks and shares component – with an increased limit of £4,000, or -Maxi ISA – with a limit of £7,000.
Your ISA manager will tell you which component your insurance policy qualifies for.

There are two ways - called 'components' - in which your money can be invested: ‘cash’ and ‘stocks and shares’ (both of which can include some specially designed life insurance policies).

You do not have to declare income and capital gains from ISA savings and investments or even tell your Inland Revenue office that you have an ISA.

ISA policies must meet a number of conditions to qualify. Managers offering life insurance will be able to give you details of the policies.

In each tax year you can put in up to £7,000. A tax year runs from 6 April to 5 April the following year.

Whether you choose a Maxi or a Mini ISA in any year is up to you, but remember...
- if you want to invest more than £4,000 in stocks and shares, you must open a Maxi ISA
- if you want different ISA managers for different kinds of saving, you will need Mini ISAs
- always shop around for the arrangement that will give you the best deal or is most convenient.

Approval does not guarantee an ISA manager’s performance, or that the ISA investments will produce a satisfactory return. Go to approved ISA and PEP managers.

Managers may offer Maxi or Mini ISAs or both. They may offer cash ISAs and stocks and shares ISAs , or only one of these. Some managers may offer ISAs that can include only that company's products. Others may offer a choice of their own and other companies' products. Or they may offer 'self-select' ISAs, where you choose from a wide range of shares and securities the ones you want to hold in your ISA.