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ISA activity levels predicted to rise

ISA activity levels predicted to rise

Category: Savings

Updated: 25/02/2010
First Published: 25/02/2010

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 It is now over 6 months old so the content may be out of date.

ISA business levels have been predicted to surge in the coming months as a result of the enlarged limits, according to a survey.

Nine out of ten advisers think their clients will utilise the £3,000 allowance when the new tax year begins in April, the Fidelity FundsNetwork Adviser Sentiment Index has revealed.

Over three quarters (75.8 per cent) of advisers said that their over 50 client base had already taken advantage of the increased limits, which allow an additional £1,500 cash and £1,500 to be invested in equities.

When asked whether they expected their clients aged under 50 to take advantage of the new entitlement once it was universally rolled out, 87 per cent said they did.

"To be able to shelter £10,200 each year from the tax man is a big deal," commented Peter Hicks, head of retail sales at Fidelity FundsNetwork.

"Over time with accumulation, that money could be used towards education, paying off a mortgage or even retirement."

Eight in ten advisers questioned said they would be encouraging their clients to make investments into equity funds.

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