The changes actually simplify tax free saving, but, many people are not even aware the changes are taking place, let alone what the changes are.

In response, Fairinvestment.co.uk has produced a free online Guide to ISA Changes. The guide, which can be downloaded from the website: at http://www.fairinvestment.co.uk/guide_to_isa_changes.aspx, explains the changes in simple and easy to understand terms.

“From April 6 this year, Mini and Maxi ISAs will be scrapped in favour of Cash ISAs and Stocks and Shares ISAs,” explains Sharon Bratley, Chartered Financial Planner at Fairinvestment.co.uk, “which is a much simpler set up.”

“Before, you could invest up to £7,000 a year tax free. You could either choose to invest the whole amount into stocks and shares, or up to £3,000 in cash and the rest in stocks and shares.

“To invest the total in stocks and shares, you would have to have a Maxi ISA, to invest just in cash, you would need to open a Mini Cash ISA, and to invest in both, you would have to ether have two ISAs; a Mini Cash and a Mini Stocks and Shares, or a Maxi ISA in which the investment was split between the two.”

“You could not pay into a Mini ISA and a Maxi ISA in the same tax year.”

“Thankfully, this has been massively simplified. Now there are only two types of ISA – Cash ISAs and Stocks and Shares ISAs. The tax free limit has been raised to £7,200 overall, £3,600 of which can be invested in cash.

“From April 6th, existing ISAs will be automatically reclassified under the new rules, and you may pay into both a Cash ISA and a Stocks and Shares ISA during one tax year, as long as your combined investment does not exceed the £7,200 limit.”

Ms Bratley says she welcomes the changes, because she thinks it will make tax free savings a lot easier to understand.

“Currently, the rules surrounding tax free savings are overly complicated. This shift to having just two types of ISA is a much better approach. It offers simplicity to savers and should give people more confidence when shopping around for the best ISA deals.”

Download the FREE Guide to ISA Changes.