Following the publication of price inflation figures for September, the Consumer Prices Index (CPI) has reached its highest level since September 2008. This level of inflation is clearly having an impact on us all. However, there is some good news for savers and investors in the form of an increase to the Individual Savings Account (ISA) limits.
The ISA limits are now increased each year in line with the increase in CPI. For ease of planning, the limits are then rounded up to be easily divisible by 12. This makes it easier to calculate the monthly allowance.
From 6th April 2012, the maximum annual ISA investment will rise to £11,280 (or £940 per month). Individuals will be able to invest up to £11,280 into an investment ISA, or they can invest up to £5,640 into cash ISA, with the remainder available to invest in an investment ISA. This is £600 higher than the limit for the current year.
The higher ISA allowance represents good news for savers and investors who want to protect their returns from tax and aim to achieve a net return to keep pace with high levels of price inflation.
Whilst planning ahead, we would remind all savers and investors that there is still plenty of time to take advantage of the current ISA allowance of £10,680 and would encourage clients not to leave it to the last minute.
Please call us on 01244 247 583 to discuss your options.