11 February 2013
ISA allowances are changing from 6 April 2012.
Savers will be encouraged to learn that they will be able to invest up to £11,280 into an investment ISA in the tax year 2012/2013 or, they can invest up to £5,640 into a cash ISA, with the remainder available to invest in an investment ISA. This is £600 higher than the limit for the current year.
Increases to the ISA allowance are now based on the Consumer Prices Index (CPI) inflation figure for the year to the previous September. They are then rounded up to be easily divisible by 12. This makes it easier to calculate the monthly allowance, which will be £940 per month for 2012/13. The latest CPI figure will be published on February 14 2012.
The higher ISA allowance represents good news for savers and investors who want to protect their returns from tax and aim to achieve a net return to keep pace with high level of price inflation.