The deadline for investing in your 2005/06 ISA is 5 April 2006. If you haven’t already used up your ISA allowance, you will need to act soon. The crucial thing to remember is that once the deadline has passed, you can’t retrospectively use this allowance.

Q: What is an ISA?
A: An ISA stands for Individual Savings Account. It is a special type of ‘wrapper’, which for the most part is immune from tax. It’s not an investment itself – you put your savings or investments into it.

Q: What are the two possible components to an ISA?
A: The first is the cash component – you can save cash inside an ISA and the interest will be tax-efficient. The second is the stocks and shares component – you can invest in shares, investment funds (such as unit trusts, OEICs and investment trusts), gilts, corporate bonds and certain life insurance products.

Q: Can I have a Maxi and Mini ISA in the same tax year?
A: No. It's very important to understand the differences between a Maxi and Mini ISA, because each tax year you are only allowed to invest in one of these two types. We can discuss with you the most appropriate option for your situation.

Q: Is it possible for me to have two Mini ISAs in the same tax year?
A: Yes, you can have two Mini ISAs each tax year, made up of a cash Mini ISA and/or a stocks and shares Mini ISA up to the £7,000 limit.

Q: How much could I save or invest into Mini ISAs?
A: You can put up to £3,000 into your cash Mini ISA and up to £4,000 into your stocks and shares Mini ISA. If you like, you could have a cash Mini ISA with one company and a stocks and shares Mini ISA with another.

Q: Can I have more than one Maxi ISA in the same tax-year?
A: No, you are permitted to have only one Maxi ISA each tax year.

Q: How much can I invest into a Maxi ISA?
A: You are allowed to invest a total of £7,000 for the current tax year into a Maxi ISA, of which £3,000 can be put into cash and £4,000 into stocks and shares. Alternatively, if you prefer, you could invest the full £7,000 limit in stocks and shares.

To find out more about utilising your 2005/06 ISA allowance, please e-mail or contact us for unbiased independent advice.

Levels and bases of, and reliefs from, taxation are subject to change.