This year’s 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.
By Sam Gooch