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IMA – increase ISA allowance

IMA – increase ISA allowance

Category: Savings

Updated: 27/03/2009
First Published: 26/03/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Investment Management Association (IMA) has called on the Government to raise the limit on isa allowances and to introduce more incentives for savers.

Currently, the limit for ISAs stands at £7,200; the IMA would like to see that substantially increased to £9,600.

With the 2009 Budget now less than a month away, Prime Minister Gordon Brown recently said that he is considering raising the ISA limit for pensioners.

Savers have seen the returns they receive on their funds decline in recent months because of cuts to The Bank of England's base rate, which currently sits at a record low of 0.5%.

"The time is ripe to look for ways to rejuvenate the incentives to save in ISAs," said IMA chief executive, Richard Saunders.

"A good start would be to raise the ISA allowance to £9,600, a level which would restore its value, taking account of inflation since its introduction."

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