1. Stakeholder cash and medium term products can be held in your ISA. From 6 April 2006 you are able to hold an insurance policy in your ISA, but the separate 'Mini insurance ISA component' is no longer available and instead, depending on the type of insurance policy you hold, your policy qualifies for the:
   
   
   • Mini ISA cash component - (limit £3,000)
   • Mini ISA stocks and shares component (limit £4,000)
   • Maxi ISA - with a limit of £7,000, but no more than £3,000 in cash.
   
   
2. Investments in ISAs are free of income tax and capital gains.
3. Those aged 16-17 can invest up to £3,000 only, either in the cash element of a maxi-ISA or in a cash mini cash ISA.
4. ISAs allow you to take your money out at any time without losing tax relief and furthermore you are not required to declare income and capital gains from ISA savings.

In the 2006 Pre Budget Report it was announced that PEPs will be brought into the ISA wrapper. This will now take effect from 6 April 2008.

April 2008 and Beyond

From 6 April 2008 the ISA annual limit will increase to £7,200, with a maximum of £3,600 in cash.