NOW OPEN: the MSE Forum 'Ask An Expert' event. This time we'd like your questions on TRAVEL & HOLIDAY DEALS. Post by Wed and deals expert MSE Oli will answer as many as he can.
Budget 2010: Isa savings limits to rise each year in line with inflation

128 Posts
This is the discussion thread for the following MSE News Story:
0
This discussion has been closed.
Latest MSE News and Guides
Replies
I wonder how they'll round it. Or whether it'll be "everyone can invest exactly £5227.50 in a Cash ISA"....
People who have saved in Cash ISA's from day one and got good interest rates over the years now have over £50K in their accounts. For a government backed savings scheme the saver really should be protected. Thought this matter may have been addressed in the Budget today.
Yes atm they are but but people soon forget the better rates they were receiving and will again, I'm sure.
Sometimes.... I am like a dog with a bone
No wonder others get it wrong!
If the EU said 'the new limit is £100K (or more likely 100K Euros), get on and implement it', then it would happen (eventually) whether the financial institutions agree or not.
I have the full years ISA avaliablity for me to use this year ( 2009 2010)( I have no ISA for this year) and want to invest the full amount of cash possible into a cash ISA before the April deadline. I am56 yrs old so can as I understand I can put £5100 into a cash Isa for this year.
Ok so far so good. I was expecting to do the same after April.
I presume that is all correct, the bit that confuses me is where it says on this site that for every £1 cash ISA I use I get a £1 reduction in the shares ISA allowance. So I presume if I get a full £5100 cash ISA I am not allowed to buyt any shares ISA?
Quote "
The cash Isa rate is rising from £3,600 to £5,100 at the same time, which we already knew. The limits increased by the same margins last October for the over 50s.
You'll be able to invest up to £10,200 per tax-year in a stocks and shares Isa from April, though for every £1 you put in a cash Isa, you lose £1 in your stocks and shares allowance."
Can someone tell me who much I can invest this year 2009-2010 and how much next year 2010-2011 in a cash ISA, and likewise if I do want to take the offer of shares ISA's for each year what amount would I be allowed to invest in them for the years 2009-2010 and 2010-2011?
Sorry to ask an obvious question but I am new to the IS a game.:eek:
Many Thanks
Mike
No this is not correct, you have an allowance of £10,200 tax-free (£5,100 in a cash isa and £5,100 in a stocks and shares isa).
However you can put more into a shares isa than a cash isa as long as the £10,200 limit is not exceeded so say you put £7,000 into a stocks and shares isa you can only put £3,200 into a cash isa.
Hope this helps.
Shares: £273.36 (Bought £494.14) £220.78
SIPP: £5,366.63 (Bought £5,429.44) £503
S&S ISA: £11,560.70 (Bought £10,537.58) £1,023.12