You may be aware that Individual Savings Accounts (ISAs) are to be replaced on 1^st July 2014 by “New ISAs” (NISAs). This is the biggest change to tax free savings since April 1999 when ISAs were launched.

Back then and until now, there was a clear distinction made between tax free savings accounts (cash ISAs) and tax free investment accounts (Stocks and Shares ISAs).

Stocks and Shares ISAs had various investment restrictions applied and as a result many only had shares, with no other assets included.

A few years ago, it became possible to move your cash ISA to shares, but not the other way round, and this made little sense for most savers who wanted to keep their cash safe, with no investment risk.

In 1999, most investors would typically have chosen a UK Growth fund that consisted almost entirely of UK shares, and while this was perfectly acceptable when the market was rising, it provided little protection when the market fell.

Over the long term, funds with relatively high equity content have tended to offer better returns. However, the value of equities can fall as well as rise and they can be volatile. Over the years, a great many “multi-asset” funds have appeared as investment vehicles, as have a whole range of risk rated funds,  from defensive to highly adventurous, with everything in between.

The NISA will have a higher annual contribution limit of £15,000 but more significantly you can hold any amount in cash or shares and all the remaining investment restrictions have been lifted. Most significantly, you can now also transfer from shares to cash.

All this means that even risk averse savers can dip a toe into investment waters to escape the paltry interest being paid on cash ISAS, secure in the knowledge that they can switch back to cash when interest rates improve.

Although these changes are happening now, a lot more has changed since 1999. Old investment funds chosen then may not be doing the job you want them to do now. It is unlikely that you are driving the same car, or wearing the same clothes that you did 15 years ago, so why hold the same investments?

These new rules present an ideal opportunity to review all your ISA holdings and find out if you could be doing better. James & George Collie Financial Management offer a full range of investment options that we would be happy to discuss with you. For further information and/or a free initial consultation, contact our investment advisers by email at This email address is being protected from spambots. You need JavaScript enabled to view it. or by telephone on 01224 581581.