Although Individual Savings Accounts (ISAs) have been around for some time to provide tax-free income and growth while within this investment, over the last 12 months they have enjoyed a boon which will be of interest to those struggling to get a decent return on their investments.

On July 1, 2014, ISAs were reformed into a simpler product, the NISA with a sizeable increase in the annual subscription limit and the removal of the restriction on the amount that can be invested in cash.

NISA savers are now able to subscribe the full amount of their allowance, which from April 6, 2015, amounts to £15,240, into a cash account and for those aged 18 or over they will have the flexibility to switch between stock and shares and cash investments.

For married couples, they have the ability to shelter over £30,000 per annum from income tax and capital gains tax.

A further measure came into effect from April 6, 2015, which gives an additional ISA allowance for spouses or civil partners when an ISA saver dies. The surviving spouse will be able to invest the inherited funds into their own ISA, on top of their usual allowance. Effectively, these investments are left intact and the spouse becomes the new owner of the deceased person’s ISA.

This measure applies for deaths from December 3, 2014, and is likely to be of great significance for those who have built up tax-free funds over many years.

In the last Budget, the Chancellor announced assistance for those struggling to save towards the purchase of their first home with the introduction of the Help-to-buy ISA. With this account, a person can save up to £200 per month with the government chipping-in an extra 25% which represents £50 for every £200 saved.

The bonus will be paid when the home is purchased, with the minimum being £400 and the maximum bonus of £3,000 being available to those who have saved £12,000 for their first home.

This account will be available for four years from this autumn although, once an account is opened, there is to be no limit to how long an individual can continue to save into it.

Help-to-buy ISAs will be offered by banks and building societies and accounts can be opened with an initial deposit of up to £1,000 to take account of the £200 a month savings people may have built up from April, 2015.

Accounts will be limited to one for each person rather than one for each home, enabling a couple to each save up to £30,000 (£24,000 plus £6,000 government bonus).

The bonus can only be put towards a first home located in the UK with a purchase value of £450,000 or less in London and £250,000 or less in the rest of the UK.

As is currently the case it will only be possible for an individual to subscribe to one cash ISA per year.

It will not be possible for an account holder to subscribe to a Help to Buy ISA with one provider and another cash ISA with a different provider.

For younger savers, the subscription limits for Junior ISAs and existing Child Trust Fund holders have increased to £4,080 and for both these investments, no withdrawals can be made until the child reaches 18 but they offer the possibility of parents, grandparents, other family members and friends saving towards the child’s financial needs ISAs now provide tax-free saving opportunities from “cradle to the grave”.