Transition and Older Types of ISA
PEPs became stocks and shares ISAs, with an exemption that allowed them to continue to hold investments that could not be held in a stocks and shares ISA, provided that the investment did meet the pre-2001 PEP rules.
New TESSAs could not be created after 5 April 1999, so the required five-year term of all TESSAs ended by 5 April 2004. TOISAs were created to allow the original capital (excluding interest) invested in a TESSA (up to £9,000) to be reinvested in a tax-free form. It was only possible to invest in a TOISA with the capital from a matured TESSA, and new TOISAs could be created only for the complete transfer of funds from another TOISA.
At introduction there were Mini ISAs, Maxi ISAs and TESSA-only ISAs. In the March 2007 Budget, the distinction between a Mini and a Maxi ISA was abolished. At this point the limits for the 2008/9 tax year were also increased.
An insurance component was available in both maxi and mini ISAs. However, since the 2005/06 tax year this component has not been available. Collective investment funds that once qualified for this component will have been reclassified as qualifying for either the Cash or Stocks & Shares component.
Read more about this topic: Individual Savings Account
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