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isa limits have increased

october 2009

individual savings accounts (isas) are flexible savings vehicles that provide a lifelong shelter from which tax free income and capital withdrawals can be made.

 

there are two types of isa plans; cash isas and stocks & shares isas.  cash isas are essentially tax efficient bank deposit accounts.  within stocks and shares isas, it is possible to invest in a range of assets to suit individual risk profiles and objectives including uk and overseas equities, property funds and fixed interest securities.

from 6th october 2009, the maximum annual investment that can be made into an isa will be raised from £7,200 to £10,200 for the 2009/10 tax year for those aged 50 and over.

 

for eligible investors, the maximum cash isa investment will be £5,100, however, the balance of any funds not held in cash can be invested in stocks & shares isas instead.  for example, if £1,000 is held in a cash isa account, then up to £9,200 could be invested into a stocks & shares isa.

 

the increased limits will apply to all isa investors regardless of age with effect from 6th april 2010 for the 2010/11 tax year onwards.

 

isas can be used for a variety of objectives including retirement planning, school fees planning, mortgage repayment vehicles, etc.

 

in a climate of increasing taxation, the ability to shelter £10,200 per annum (£20,400 for couples) in flexible tax efficient isa plans is likely to be an attractive opportunity, particularly for high earners.

 

if you would like to discuss isas and other investment opportunities, then please feel free to contact me by telephone on 020 8370 7716 or by e-mail at kevin@ramsaybrown.co.uk.

 

 

kevin quinn

certified financial planner

ramsay brown financial services limited

 

authorised and regulated by the financial services authority