Higher ISAs from next year (this year for 50+)

BruceyBonus

Just heard in the budget, next tax year will be £10,200 limit with £5,100 being Cash, rest S&S.

For over 50s, the increase will take place this year.

Edited at 13:43: summary from Treasury website makes things clearer:

an increase in the annual investment limit for Individual Saving Accounts to £10,200, up to £5,100 of which can be saved in cash. These higher limits will be available to people aged 50 and over from 6 October 2009 and available to all from 6 April 2010, directly benefiting over 5 million people who currently use their full ISA allowance;

Edited 24/04/09: Petition is now live at http://petitions.number10.gov.uk/under50sisa/

Please sign if you believe it was unfair on both individuals and the banks/building societies to introduce the new allowance for over 50s in this tax year, whilst making everyone else lose out on the extra allowance for this year.

Also, please sign if you are over 50 and believe this was unfair.

Thank you very much

welshmoneylover

Nice to hear savers getting a break!

Does this mean for the tax year 2010/2011 though?
Not heard the full news story yet.

adambro

For everyone else, we'll have to wait till next year but why?! It really irritates me. Why doesn't the government went to encourage younger people to save?

welshmoneylover

I think the government wants people to go out and spend right now to keep the economy going.
I'm still saving though, just wish interest rates would go up a bit so I can get a better return on my money.

BruceyBonus

adambro wrote: »

For everyone else, we'll have to wait till next year but why?! It really irritates me. Why doesn't the government went to encourage younger people to save?

Totally agree. And how is it going to be implemented on the bank/BS computer systems?

What about people who have opened fixed rate accounts already that don't accept further deposits? Will they be allowed to open a new account to save the difference?

And people who turn 50 this year? At least they'll get a birthday present from the Chancellor on their birthday.

BruceyBonus

This is the summary from the Treasury website:
"an increase in the annual investment limit for Individual Saving Accounts to £10,200, up to £5,100 of which can be saved in cash. These higher limits will be available to people aged 50 and over from 6 October 2009 and available to all from 6 April 2010, directly benefiting over 5 million people who currently use their full ISA allowance;"

welshmoneylover

So this new £5,100 does it apply now to the under 50s or the over 50s for this tax year.

Or does it start next tax year April 2010?

I like the name BruceyBonus, wish I'd thought of that. I wanted to be !!!!!Galore but it wouldnt let me!

welshmoneylover

The !!!!! refers to the character Honor Blackman played in the James Bond film, Goldfinger I think?

Baldur

welshmoneylover wrote: »

So this new £5,100 does it apply now to the under 50s or the over 50s for this tax year.

Or does it start next tax year April 2010?

See http://www.hmrc.gov.uk/budget2009/bn51.pdf

Operative date
3. Raising the ISA limits for people aged 50 and over for 2009-10 will have effect on and after 6 October 2009, and raising the ISA limit to the same level for all ISA investors will have effect on and after 6 April 2010.

Jonbvn

IMHO this is really good for us savers. I hope it fosters a increased desire to save.

One thing I would bear in mind is that whilst rates are low the treasury is not "losing" much money. When rates increase this will change, maybe forcing the gov't of the time to reduce the limit. Therefore, use the full limit whilst you can.

molerat

BruceyBonus wrote: »

This is the summary from the Treasury website:
"an increase in the annual investment limit for Individual Saving Accounts to £10,200, up to £5,100 of which can be saved in cash. These higher limits will be available to people aged 50 and over from 6 October 2009 and available to all from 6 April 2010, directly benefiting over 5 million people who currently use their full ISA allowance;"

My full £3600 is already in a fixed rate bond. I wonder how the institutions are going to play this one. What should I do with Mrs Molerat's ? Probably leave it earning gross in a normal account and place it in an ISA at the end of the FY.