Budget 2010: Isa savings limits to rise each year in line with inflation

globetrotter2010

Hi Shrewsaver
Thanks for the quick reply..

Basically I could have say, £9000 in a shares isa this would then only allow me to have £1200 in a cash isa for that year giving me the £10200 max allowance for that year.

I was missing the fact that you can have more than £5100 shares isa with the remainder being taken as a cash ISA if so desired.

Cheers Mike:j

shrewsaver

globetrotter2010 wrote: »

Hi Shrewsaver
Thanks for the quick reply..

Basically I could have say, £9000 in a shares isa this would then only allow me to have £1200 in a cash isa for that year giving me the £10200 max allowance for that year.

I was missing the fact that you can have more than £5100 shares isa with the remainder being taken as a cash ISA if so desired.

Cheers Mike:j

Yes, that is correct, you could if you so wished put the whole allowance in the Shares isa.

globetrotter2010

Many Thanks
regards
Mike

Old_Wrinkly

jimbow25 wrote: »

Good news though it's a shame they never thought of doing it whilst it was £3,000 for the first 10 years or so.

I wonder how they'll round it. Or whether it'll be "everyone can invest exactly £5227.50 in a Cash ISA"....

From the various Budget papers :

6. From 6 April 2011 and over the course of the next Parliament, the annual ISA limits will increase annually in line with RPI. The new annual limits will be rounded to the nearest multiple of 120 so that individuals who save monthly will be able to calculate their monthly savings more easily.

7. The new limits will be calculated by reference to the RPI for the September before the start of the tax year, and HM Revenue & Customs will announce the new limits as soon as possible after the RPI figure is published, and at least four months in advance of the start of the new tax year in which they will apply.

john_s_2

6. From 6 April 2011 and over the course of the next Parliament, the annual ISA limits will increase annually in line with RPI. The new annual limits will be rounded to the nearest multiple of 120 so that individuals who save monthly will be able to calculate their monthly savings more easily.

That's quite a good idea. A new one as well I'd wager, given that £5100 / 120 = 42.5

Or are they only referring to £10,200? I wouldn't have thought people who have the nous (and money) to invest in shares need help with arithmetic :-\

realaledrinker

tangsman wrote: »

When are the government going to increase the FSCS £50K protection limit?
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.

Nothing to stop you transferring part of the balance to another provider. It's only the current year's subs that have to be transferred in full.