Business News
Tax-free cash ISA allowance raised for the over-50s
Those coming up to retirement age need to take advantage of new ISA limits, allowing them to save extra cash, says Halifax firm LRH Wealth Management.
From 6 October 2009, the over-50s can save up to £5,100 tax free in their cash ISAs up from the previous £3,600 limit per tax year.
And those who choose to invest in a stocks and shares ISA get even more of a bonus, with the overall ISA limit going up to 10,200 (up from £7,200), although for every £1 you put in a cash ISA, you lose £1 in your stocks and shares allowance.
Savers who are 50 or over before 6 April 2010 get the extra allowance for the current tax year, from 6 October. If you turn 50 between 6 October 2009 and 5 April 2010, then you'll have access to the additional allowance from your birthday.
Everyone else will get the benefit of these increased limits, but will have to wait until next April.
“The past year or so has been particularly bad for savers, who have seen their nest eggs shrink dramatically thanks to plummeting interest rates, so this is good news for them at last,” said Richard Mills director at LRH Wealth Management.
“However, this new system can be difficult to get to grips with. Financial planning is imperative for the over-50s age group, so it is crucial get advice so that they can best take advantage of these changes.”
For more information contact Lambert Roper & Horsfield on 01422 360788.
