Move over TESSA, make way for ISA.
In April 1999, ISAs will replace tax-free PEPs and TESSAs.
Currently 750,000 investors have more than pounds 50,000 in Peps and Tessas. But in 1999, any surplus they hold over pounds 50,000 will for the first time become liable to tax.
PEP holders will have until October 1999 to transfer up to pounds 50,000 into an ISA.
You can still take out a new Tessa, right up until April 1999. And they will be able to run their five-year course.
Once the Tessa matures, you will be able to transfer the money amassed into an ISA, up to a pounds 50,000 limit.