With effect from 6 April 2008 the rules governing PEPs and ISAs will be simplified:

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• The distinction between maxi and mini ISAs will be removed.
• The annual ISA allowance will be increased to £7,200 for each individual.
• As an alternative to investing wholly in stockmarket funds or securities, it will be possible to invest up to £3,600 in cash with one provider and the balance in funds or securities with the same or a different provider.
• Existing cash ISAs will be able to be transferred into funds and securities ISAs.
• PEPs will automatically become funds and securities ISAs.
• TESSA-only ISAs will become cash ISAs.
• It will become possible to transfer Child Trust Funds to ISAs when they mature.
• ISAas will be available indefinitely. Previously the intention was that they should be available only until 2009.

Graham Thomas