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ISA allowance to increase throughout 2009/10

This years budget has proved to have its ups and downs, but a definite bonus to all you savers out there is that the amount of money in which you can invest into an Individual Savings Account (ISA) will be increasing from the current maximum of £7,200, to £10,200!

This means that you can boost your current annual £3,600 cash ISA savings to £5,100, and the same goes for your stocks & shares ISA allowance, but with this type of ISA you can invest up to your full ISA allowance, giving you the option to potentially invest £10,200 every year – either entirely into a stock & shares ISA, or a combination of the two.

This is great news, as it effectively means that you can invest a higher amount and receive 100% of the returns, without having to pass a penny on to the tax-man!

However, the new allowance will not be made available instantly. If you’re less than 50 years old, you will have to wait until the beginning of the new tax year (6 April), and even for those that are aged over 50, you will have to wait until 6 October before you become eligible to invest the increased amount.

According to http://newsbump.co.uk/ the allowance will see future increases to stay in line with inflation.

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By Sam Gooch

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This entry was posted on Wednesday, May 13th, 2009 at 4:48 pm and is filed under Financial Service Updates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “ISA allowance to increase throughout 2009/10”

  1. Andrew Carlisle Says:
    March 30th, 2011 at 1:51 am

    Being able to save £5,100 in your cash ISA is huge. I think its a great incentive to get people saving and to help fix this economy of ours that seems to rely on credit card debt.

  2. easy recipes Says:
    March 30th, 2011 at 1:30 pm

    This is great news, as it effectively means that you can invest a higher amount and receive 100% of the returns, without having to pass a penny on to the tax-man! it does a lot of favor in our side!!

  3. fresh coffee man Says:
    April 7th, 2011 at 5:22 pm

    Am I missing something here? At the paltry rates of interest currently avaialiable (and available for the foreseeable future) changes like this are just tinkering about. It only makes a few quid difference. If I had £10200, I’d put it on a horse…

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