Individual Savings Account - Transition and Older Types of ISA

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.

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