When it comes to ISA allowances the term ‘use it or lose it’ is very true, you only get one annual allowance, and if you miss investing or saving in the tax year, you could be missing out on very valuable tax efficient savings.
ISA savers will be able to invest around £600 more in the next tax year after the Office for National Statistics announced that inflation hit 5.2% in September.
Investors are currently able to place £10,680 in the tax-efficient vehicles. However, that number is set to rise to £11,280 from April 2012, of which £5,640 can be placed in a cash ISA.
The ISA limit was indexed to inflation for the first time in June last year, with the figure being calculated to the nearest £120. The change linked ISAs to RPI but from 2012 the limit will rise in line with the less generous CPI.
This means that investors can invest up to £940 per month into the stock and shares element or savers can invest up to £470 per month into the cash element.
Please click here for our free ISA guide for 2011/2012 HERE
Should you require more information, please do not hesitate to contact us on 01737 225665 or email us at advice@conceptfp.com
The Concept Team
