What is changing and can I benefit?

Last year’s budget saw the chancellor announce one of the biggest changes to ISA’s that we have seen. If you are aged 50 or over before 5th April 2010, you will be able to benefit from an increased ISA allowance of £10,200 now. If you are aged under 50, then the new limits will come into effect after 5th April 2010. That is a massive £3,000 increase and provides a more generous shelter from the taxman.

For those aged 50 and over from 6th October 2009, the new rules were as follows:

• Invest up to £10,200 in a stocks and shares ISA or
• Invest up to £5,200 in a cash ISA and up to £5,200 in a stocks and shares ISA
• You can also transfer cash ISA’s to stocks and shares ISA’s, but note you cannot transfer the other way.

If you are currently aged 18 to 49 then the  ISA limit remains at £7,200 until 5th April 2010 and then rises to £10,200.

• Invest up to 100% of your allowance in a stocks and shares ISA, or...
• Invest up to 50% of your allowance in a cash ISA and up to 50% in a stocks and shares ISA
• You can also transfer cash ISA’s to stocks and shares ISA’s, but note you cannot transfer the other way.