High inflation means ISA limits will increase to £11,280 from next April, the Treasury has announced.
The Office for National Statistics today published inflation figures for 2011, measured from September, with the consumer prices index (CPI) hitting a record 5.2%. This means the inflation linked ISA limit will rise from £10,680 to £11,280.
Junior ISAs will be available from 01 November 2011 with a limit of £3,600 for each eligible child.
This is good news for savers and Investors, and now means that a couple can shelter £22,560 between them every year into ISA’s from 6th April 2012 onwards. This really is a useful strategy and very complementary to Pension savings. Remember that all future income from an ISA is tax free and so can prove to be a highly welcome and tax-efficient source of income in retirement.
Here at Pembroke we run an Income portfolio on our Wealth Management service. Speak to us if you would like more information.