This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8010924.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Isa allowance rising to £10,200 Isa allowance rising to £10,200
(1 day later)
Savers over 50 will have the chance to top up tax-free savings in Individual Savings Accounts (Isas) from October.Savers over 50 will have the chance to top up tax-free savings in Individual Savings Accounts (Isas) from October.
The limit will go up from £7,200 to £10,200 from 6 October for those over 50 years old and for everyone else from April 2010. The annual limit will go up from £7,200 to £10,200 from 6 October for those over 50 years old and for everyone else from April 2010.
The cash limit in the overall allowance will rise from £3,600 to £5,100. The remainder can be invested in shares.The cash limit in the overall allowance will rise from £3,600 to £5,100. The remainder can be invested in shares.
There are about 18 million Isa account holders in the UK, with five million using the full allowance each year.There are about 18 million Isa account holders in the UK, with five million using the full allowance each year.
Changing timesChanging times
This is not a case of tinkering around the edges Christine Ross, Savings and investments expert What the Budget means for you Try the Budget calculatorThis is not a case of tinkering around the edges Christine Ross, Savings and investments expert What the Budget means for you Try the Budget calculator
Isas were introduced 10 years ago by then-chancellor Gordon Brown in an attempt to encourage UK residents to get into the savings habit.Isas were introduced 10 years ago by then-chancellor Gordon Brown in an attempt to encourage UK residents to get into the savings habit.
Some BBC website readers have already been asking about the changes and how it would affect them.Some BBC website readers have already been asking about the changes and how it would affect them.
The current limit is £7,200, with a maximum cash investment of £3,600. This will go up to £10,200, with half of this as a cash investment - costing the Treasury a total of £60m by 2011-12.The current limit is £7,200, with a maximum cash investment of £3,600. This will go up to £10,200, with half of this as a cash investment - costing the Treasury a total of £60m by 2011-12.
The move has been welcomed by savings and investments expert Christine Ross who told the BBC that this was a bold move.The move has been welcomed by savings and investments expert Christine Ross who told the BBC that this was a bold move.
"This is not a case of tinkering around the edges. For a lot of people a great deal of their savings will now fall outside of the tax net," she said."This is not a case of tinkering around the edges. For a lot of people a great deal of their savings will now fall outside of the tax net," she said.
But the benefit to savers will be relatively limited if interest rates fail to rise from their current low levels, according to David Black of Defaqto.But the benefit to savers will be relatively limited if interest rates fail to rise from their current low levels, according to David Black of Defaqto.
BUDGET 2009 Complete Budget report [2.59MB] Most computers will open this document automatically, but you may need Adobe Reader Download the reader hereBUDGET 2009 Complete Budget report [2.59MB] Most computers will open this document automatically, but you may need Adobe Reader Download the reader here
At the best interest rates being offered at present, the increase gives additional tax-free interest of £54.15, he said.At the best interest rates being offered at present, the increase gives additional tax-free interest of £54.15, he said.
Brian Morris, head of savings at the Building Societies Association (BSA), said there was some breathing space for the providers of Isas to administer the changes.Brian Morris, head of savings at the Building Societies Association (BSA), said there was some breathing space for the providers of Isas to administer the changes.
"We will be checking with our members that six months is sufficient," he said."We will be checking with our members that six months is sufficient," he said.
"The increase in the limit is very welcome and something that we lobbied for. However, we would have preferred for this all come into force in one go.""The increase in the limit is very welcome and something that we lobbied for. However, we would have preferred for this all come into force in one go."