UK Depositor Protection Increased

The FSA have just announced that the Financial Services Compensation Scheme limit is to increase to £50,000 from 7 October. So each depositor now gets £50,000 protection (£100,000 for joint accounts). This is good news for UK depositors.

This applies to bank deposits only and doesn't affect investors.

What protection do small Ltd Co. Businesses receive under the FSCS?

The FSA rules define who is eligible to claim under the scheme. These exclude Large Companies and Large partnerships. So if you don’t meet the definition of a large company then you should be eligible. The definition is as follows “a body corporate which does not qualify as a small company under section 247 of the Companies Act 1985, or section 382 of the Companies Act 2006 as applicable.” Pretty technical so you might want to check with your accountant.