Invest up to £15,240 tax free
The new IF ISA allows you to subscribe up to £15,240 in the 2016/17 tax year and protects the return on those investments from tax. You can also reinvest your returns without being taxed, meaning you can grow your money for as long as you like, tax free.
You can choose to split your ISA allowance across Cash, Stocks & Shares, and IF ISAs as you please. You can even move your money around between your ISAs, as long as you stay within the annual limit. Some providers may charge you for this, so do check first.
Just bear in mind that as with Cash and Stocks & Shares, you can only invest in one IF ISA in each tax year (so if you invest in an IF ISA with Abundance, you cannot open one with another provider until next year).
Transfer your existing ISAs
If you have already built up tax free savings in Cash or Stocks & Shares ISAs in previous tax years you can transfer some or all of these funds to an IF ISA, no matter how big the pot. This allows you to diversify your ISA portfolio while keeping the tax free benefit.