The investment industry has given its support to the £3,000 increase in the tax free ISA saving limit but the Government has attracted criticism for only allowing over-50s to benefit from the measure this year.
Chancellor Darling said the ISA limit will be increased to £10,200 this year for the over 50s and from next year for everyone else. Of the new limit, £5,100 can be saved in cash only. According to the Government's Budget report the increase will cost the Exchequer £5m over the rest of the tax year. This will rise to £20m in 2010-11 and £60m in 2011-12. Tax Incentivised Savings Association director general Tony Vine-Lott, says the move will encourage saving and more than offset the impact of interest rate cuts on ISA uptake. "We are very pleased," he adds. "We have been pushing for an ...
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