Definitions for "Individual Savings Account"
Keywords:  pep, tessa, isa, april, maxi
A tax free investment contract, allowing investment into cash, life assurance and stocks and shares. It replaced PEPs and TESSAs for new contributions from April 1999. Different investment limits apply to maxi and mini ISAs, can be funded by lump sum or regular saving.
A tax free investment vehicle available from 6 April 1999 which allows you to invest in stocks and shares and life assurance policies, or to hold cash. It replaces personal equity plans (PEPs) and TESSAs. You may contribute up to £5,000 per annum (£7,000 for 1999/2000). No more than £1,000 (£3,000 for 1999/2000) may be held as a cash deposit, and £1,000 in life assurance products, and the balance may be invested in quoted shares and loan stock. The income and gains will be tax free.
ISAs offer similar tax-free benefits to PEP’s but you can hold a wider range of investments.
A repayment vehicle associated with Interest Only mortgages.