The measure
Individual Savings Accounts (ISAs) are tax efficient investments for individuals. They can comprise 3 elements: cash, insurance and shares. The income and capital gains in an ISA roll up tax free. The amount that can be invested into an ISA is capped annually. The limits that can be invested are increasing from £7,200 to £10,200 per year, with £5,100 rather than the current £3,600 being the permitted cash element.
Who is affected?
The increase in the limits will apply to all individuals who are UK resident and currently entitled to invest in an ISA.
When?
The change will apply to those aged 50 and over on and after 6 October 2009. For everyone else it will apply from 6 April 2010.
Our view
The increase in the investment limits into such a tax efficient investment is to be welcomed.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
