Changes to your ISA & PEP

HM Treasury announced amendments to the ISA Regulations that will take effect from April 6th 2008. We have listed below details of the changes:

ISAs are available indefinitely

Previously the Government had set an end date to ISAs of 2010. This limit has now been removed.

Mini/Maxi Distinction will be removed

From April 6th 2008 the terms ‘Mini’ and ‘Maxi’ will no longer exist. Instead there will be two ISAs available to you – a Stocks and Shares ISA or a Cash ISA. So if you hold a Bank of Scotland Share Dealing Self-Select Stocks and Shares Mini or Maxi ISA, from April 6th 2008 it will become a Stocks and Shares ISA.

PEPs moving into the ISA Wrapper

From April 6th 2008, PEPs will cease to exist and will be renamed as a Stocks and Shares ISA. They will be subject to ISA rules. This means that you will once again be able to subscribe new cash to it, subject to the overall annual subscription allowance. Your investments will continue to benefit from the tax advantages provided by an ISA.

Increase to Annual Allowance

From April 6th 2008 you will be able to subscribe a total of £7,200.00 per tax year into an ISA. Of this total, up to £3,600.00 per tax year could go into a Cash ISA and the balance into a Stocks and Shares ISA. Alternatively you could invest the full £7200.00 into a Stocks and Shares ISA.

Cash ISAs can be transferred into Stocks and Shares ISA

From April 6th 2008 you will be able to transfer cash from your Cash ISA into a Stocks & Shares ISA.

(Please note that the rules will not allow you to transfer cash from a Stocks & Shares ISA to a Cash ISA)

What will happen if I hold multiple ISAs/PEPs with you?

We will offer you the opportunity to merge these into one Stocks and Shares ISA. If you are an existing Bank of Scotland Share Dealing customer, we will contact you nearer the time to provide you with more information about your options.

Where can I find out more about these changes?

Bank of Scotland Share Dealing customers were contacted in early 2008 with details of what is happening. For further information about the changes to ISAs and PEPs from 6th April 2008, download the HM Treasury press release:

http://www.hm-treasury.gov.uk/newsroom_and_speeches/press/2007/press_86_07.cfm