For the first time, savers will also be able to hold peer-to-peer loans within their Nisa.
Mark Williams, business line manager for inheritance tax at Octopus Investments, points out: “The merging of cash and shares Isas, along with the significant rise in the annual subscription limit, comes on the back of last summer’s change in rules allowing investors to hold Aim shares in their Isas, which paved the way for the first inheritance tax-free Isa.
“This has been warmly received by investors, so we expect this latest legislation to further increase appetite for Isa investments.”
Ellie Duncan is deputy feature editor at Investment Adviser
KEY POINTS - Nisas
Higher limit
Under the Nisa, which launches on July 1, the annual allowance has increased to £15,000.
More flexibility
Investors can invest in cash and/or stocks and shares in a Nisa and will also be able to transfer existing Isas from cash into stocks and shares, or vice versa.
Top-up potential
Savers who have already reached the current Isa allowance this tax year will be able to top it up to £15,000 from July 1 2014.
