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Over 50’s prepare for ISA changes

Over 50’s prepare for ISA changes

Category: Savings

Updated: 10/09/2009
First Published: 09/09/2009

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 It is now over 6 months old so the content may be out of date.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 over 50's have been urged to take advantage of changes to the ISA rules due to come into effect next month.

In the April Budget, the Government announced that anyone aged 50 or over by 5 April 2010 will see their ISA limit increase to £10,200, up from the current limit of £7,200, with the first deposits permitted from 6 October.

The higher limits will then apply to everyone else from 6 April next year.

It was also confirmed that the amount allowed to be invested into the cash element of the tax-free investment vehicle will be increased from its present level of £3,600 to £5,100.

In a recent survey conducted by Fidelity International, 80% of eligible ISA investors said they planned to take advantage of the increased limit this tax year.

Of those looking to make the most of the tax break, the majority (77%) said they were considering investing in equities, while 35% of investors said they were considering putting some of the additional money in a cash ISA .

"As the credit crunch starts to ease, we are now burdened with the tax crunch," said Rob Fisher, Head of UK Personal Investments at Fidelity International. "Rising taxes means every saver and investor in the country needs to optimise tax efficiency of their money now more than ever."

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