ISAs: New limits for 2008
January 5, 2008
In a recent report the new savings and investment limits for ISAs for next year have been outlined. The changes to these savings and investment levels will come into force from April 2008, and although the total investment and saving combined level has gone up some experts state that those that want to save and invest may find that the amount that they can invest is less than the current level.
ISAs have become popular over recent years, providing consumers with a way to enjoy tax-free savings and enabling them to avoid paying any capital gains tax.
Under current regulations relating to saving in an ISA accountholders can invest up to £3000 each tax year in a mini cash ISA, up to £4000 per tax year in a mini stocks and shares ISA, or up to £7000 in a maxi ISA, £3000 of which can be in cash. However, from April 2008 these limits will change, enabling savers to invest up to £3600 in a mini cash ISA and up to £7200 in a stocks and shares ISA, which means that the overall investment limit will go up to £7200 in total.
An official from the Investment Management Association stated: “It is good to see the Government recognising the importance of ISAs in the UK savings market. But a 3% increase after nine years is not much and we will look for more in the future.”
Another industry professional added: “The changes to the ISA rules will not come in until 6 April 2008 which should give consumers and the industry time to adapt to the new rules. In particular the removal of the mini/maxi distinction should help members of the public better understand the ISA rules.”
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