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New ISA limit could save over 50s an additional £63billion

10 September 2009 / by Andy Davies

Over 50s are being urged to take full advantage of the new ISA limit which could allow investors to shelter an additional £63billion from the tax man.

According to Fidelity International, eight out of ten of its over 50 ISA investors are planning to invest more of their savings when the new ISA limit takes affect from October 6.

The new ISA limit will mean that anyone over 50 in the UK will be able to invest an extra £3,000 in a Stocks and Share ISA, while an additional £1,500 can be invested into a Cash ISA.

Currently, the ISA limit for a Stocks and Shares ISA stands at £7,200, meanwhile you can currently invest up to £3,600 in a Cash ISA.

Rob Fisher, head of UK personal investments at Fidelity International, explaining the tax benefits of an ISA said: "As the credit crunch starts to ease, we are now burdened with the tax crunch. Rising taxes means every saver and investor in the country needs to optimise tax efficiency of their money now more than ever."

"The good news is that the Government is increasing the amount you can shelter in that most flexible product - the humble ISA - by a whopping 42 per cent."

Mr Fisher added he has been pleased with the response from eligible investors, he said: "Encouragingly, almost 80 per cent of eligible Fidelity investors have already said that they will make use of the increased limit, but we should all be taking note and maximising our ISAs as soon as we can!"

Any over 50s who have already invested in an ISA this year can still top it up when the new limit is introduced, while from April 6 2010, all investors will be eligible to benefit from the new limits.

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', eventAction: 'Account', eventLabel: 'Invesco Perpetual Monthly Income Plus' });">Invesco Perpetual Monthly Income Plus Fund ISAyes
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Popular monthly income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. 100% discount on initial charges.
', eventAction: 'Account', eventLabel: 'Henderson Strategic Bond Fund' });">Henderson Strategic Bond Fundyes
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The aim of this fund is to deliver a quarterly income to investors by investing in higher yielding assets, which will include most types of fixed interest securities such as high yield bonds, investment grade bonds and government gilts, as well as having the ability to invest a proportion of the fund in equities. Income is paid to you quarterly.
', eventAction: 'Account', eventLabel: 'Schroders Income Maximiser' });">Schroders Income Maximiseryes
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The Schroder Income Maximiser Fund ISA aims to deliver a target income yield of 7% pa, also providing potential capital growth. Income is paid to you quarterly. 100% Discount off Initial Charges.
', eventAction: 'Account', eventLabel: 'Invesco Perpetual Corporate Bond' });">Invesco Perpetual Corporate Bond ISAyes
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', eventAction: 'Account', eventLabel: 'Artemis Income ISA' });">Artemis Income ISAyes
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One of the leading UK Equity Income Funds. The Fund managers hunt out companies with strong free cash flow and solid balance sheets. Income is paid to you twice yearly. 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'Jupiter Corporate Bond' });">Jupiter Corporate Bond Fund ISAyes
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The Jupiter Corporate Bond aims to achieve a high level of income with the opportunity for capital growth, through mainly investing in fixed interest securities. Income is paid to you twice yearly. 87.5% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'invesco perpetual high income' });">Invesco Perpetual High Income Fund ISAyes
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One of the UK's most popular income fund ISAs the Invesco Perpetual High Income has delivered consistently good long term returns through a variety of market conditions. Income is paid to you twice yearly. Up to a 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'MandG Corporate Bond' });">M&G Corporate Bond ISAyes
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The M&G Corporate Bond Fund is a conservative ‘blue chip’ sterling fund that aims to produce a higher return than UK government bonds. Income is Paid to you Quarterly. 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'Jupiter Merlin Income' });">Jupiter Merlin Income Portfolioyes
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The Jupiter Merlin Income Portfolio fund aims to achieve a high and rising income with some potential for capital growth. Income Distributions are made to you quarterly. 95% Discount off the Standard Initial Fund Charge.
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†† Income payments are dependent upon the FTSE 100 Index.

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