ISA allowance 2011 - ISA limits for 2011 to go up by £480
By Stephen Sutherland, author of Liquid Millionaire.Posted in the Category of ISAS, Investing, Wealth Building on 27th October, 2010.
Tags: cash isas, child trust fund, isa, isa allowance, stocks and shares isa.
Isa allowances for 2011
The annual 2011 ISA allowance will be increased from £10,200 to £10,680 on April 5 next year, the Treasury said.
It was great to hear that the amount of money people can save tax-free is set to rise by nearly £500 next year.
The Government announced in the Emergency Budget that it would increase the ISA allowance each year by the equivalent of Retail Price Inflation in September.
Figures released earlier this week showed that RPI was 4.6% in September, which would have given a new allowance of £10,669.20.
But the Treasury said that as many people have monthly saving plans, the figure should be easily divisible by 12, so it has set the new limit at £10,680 for the 2011-12 tax year.
Within the total, the amount people can save into a cash ISA will rise from £5,100 to £5,340.
A Treasury spokesman said:
‘The Government is committed to encouraging saving and putting the right frameworks in place for this to happen. The Budget announced that the amount savers can pay into their ISAs each year will increase with inflation. We can now confirm that savers will, from 6 April 2011, be able to pay an extra £480 into their ISAs each year, including an extra £240 into their cash ISAs.’
Savers can put all of their annual allowance into a Stocks and Shares ISA, or they can split it between a cash account and a Stocks and Shares one, paying in a maximum of £5,100 into a cash ISA during the current tax year.
More than 20 million people, more than one in three adults, currently have an ISA.
On Friday, I’m going to share with you the ten commandments of stocks and shares ISA investing which as you will see, include the importance investing the full annual ISA allowance each and every without fail.
Until the next time my friend.
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