- 23
- Feb
- 09
22/04/2009 UPDATE: Chancellor increases ISA allowance in 2009 Budget (see NEW article ‘New ISA allowance for 2009 to 2010‘)
23/02/09: The amount you could invest in Cash ISAs went up to £3,600 at the start of the current tax year 2008/09, the first time the tax-free limit was increased since ISAs were introduced in 1999.
The move was welcomed by the savings industry and noted to be a sign of “the government recognising the importance of ISAs in the UK savings market” by Richard Saunders from the Investment Management Association.
However, Mr Saunders also said that “a 3% increase after nine years is not very much and we will look for more in the future”.
Unfortunately, the next tax year, which starts on 6 April 2009, will not see the ISA limit increased any further based on information released in the Chancellor’s Pre-Budget Report in November 2008, but this may well change when the budget is announced in April 2009.
As a result, this tax year (6 April 2009 until 5 April 2010);
INSERT INTO `module_blog_posts` VALUES the amount that can be saved in ISA savings accounts will be (as far as is known until the 2009 Budget is announced on April 22):
- Up to £3,600 in a Cash ISA
- Up to £7,200 in a Stocks and Shares ISA
- Up to a maximum total annual savings limit of £7,200 (if you hold two accounts, max £3,600 in a Cash ISA and £3,600 in Stocks and Shares ISA)
ISAs allow consumers to save money and earn interest without paying any tax on the interest earned, a potential saving of 40% for higher-rate taxpayers and 20% for basic rate taxpayers.
Read the mini-guide to Individual savings accounts (ISAs)
