New ISA Limits

With effect from 6th October 2009 the new ISA limits came into place for people aged over 50 in the current tax year (2009/2010).

Who is immediately eligible for the new limits?

Anybody born before the 5th April 1960 who is a UK resident.

When does everybody else get these new limits?

From 6th April 2010 anybody who is a UK resident eligible for an ISA will have a new maximum of £10,200 per annum available either split equally between a cash ISA and a Stocks and Shares ISA or the full amount, £10,200, in a Stocks and Shares ISA.

New Limits

For those over the age of 50 in this tax year (2009/2010) they are able to take advantage of a 42% increase on their overall ISA limits from the 6th October 2009.

Old limits       New Limits wef 6/10/2009

Cash Isa’s                    £3,600             £   5,100
Stocks & Shares           £7,200             £ 10,200

Examples:

If you have used up your current Stocks and Shares ISA allowance of £7,200 and are aged 50 or over during the tax year 2009/2010 then you have an additional £3,000 allowance to use.

If you are aged 50 and over during the 2009/2010 tax year and have used the full cash allowance of £3,600, with effect from 6th October 2009 you would be able to use the remaining £6,600 for a Stocks and Shares ISA or put £1,500 further into your cash ISA (if your provider will accept it) and £5,100 into your Stocks and Shares ISA.

To find out more please contact us for a free initial consultation.