First Isa Rate Sources of first isa rate resources from the Web

If, by mistake, you put money into:
- more than one Maxi ISA
- a Maxi and a Mini ISA, or
- more than one Mini ISA of the same type in the same tax year
then the payment into the second ISA is invalid, and you are not entitled to any tax relief on investments held in the second ISA.
You must tell the manager of the second ISA as soon as possible that it is invalid. You cannot correct this mistake by closing the first ISA. If you are unsure about what to do call the Inland Revenue Helpline on 0845 604 1701 for advice.

If you die your ISA will end on the date of your death. There will be no tax to pay on income or capital gains up to that date, but your personal representatives will have to account for tax on any income or gains arising after your death. The ISA manager will either sell the investments and pay the proceeds to your personal representatives (or a beneficiary of your estate), or transfer the investments directly into their hands. The terms and conditions of the ISA may specify which it will be.

The ISA scheme provides different ways of saving to meet people's different needs. You can plan for the short term, or put your money away for much longer.

You can put money into either of the two components of a Maxi ISA. If you do not put the maximum allowed into the cash component (where it is offered by the Maxi ISA), you can put the excess into the stocks and shares component (which includes qualifying life insurance policies).

Stocks and shares ISAs may be appropriate if you can afford to leave your money untouched for longer than, say, five years. However, your investment may go down in value as well as up and there are no guarantees that you will make a profit. This component can include life insurance which is also for long-term saving and offers some built-in life cover in the case of your death. Again, there are no guarantees that you will make a profit and you may get back less than you put in, particularly if you take your money out after only a few years. However, some types of policy, including 'with profits' policies, are designed to iron out the ups and downs of the stock market.

If you take money out, any that you put back later will count against your ISA annual subscription limit in the year that you re-invest your money.

Can I get reports and accounts of the companies in my stocks and shares ISA? Your ISA manager can arrange for you to receive reports and accounts, although there may be a charge. You may also be able to attend and vote at the annual meeting of companies in which your ISA invests.

What can the cash component include? The cash component of an ISA can include:
-bank and building society accounts
-units or shares in UK authorised unit trusts and open-ended investment companies (OEICs) which are money market schemes (sometimes called ‘cash funds’) and fund of funds schemes which invest in them.
-National Savings and Investments products which are specially designed for ISAs (but not other National Savings and Investments products such as the Investment Account, Savings Certificates or Pensioners' Guaranteed Income Bonds
-certain shares and units that fail to meet the qualifying conditions for the stocks and shares component
-life insurance policies that fail to meet the qualifying conditions for the stocks and shares component. These will generally be policies that guarantee to return 95% of the money you initially invested within 5 years from the date you made the investment.

The insurer does not have to pay tax on income and capital gains on investments used to back your ISA life insurance policies. You do not have to pay any tax when the policy pays out.

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).

You can take your money out at any time without losing tax relief.