New ISA allowance for 2013-14
Ever since the March 2010 budget, when Alistair Darling announced that in future years the limits would rise annually with inflation, the start of the new tax year on 6th April has been a key date for savers. The annual increase means that many are keen to begin using their tax-efficient allowance for the coming year as soon as possible.
Last Year’s Limits
In 2012/13, the individual ISA allowance was £11, 280, of which up to £5, 640 could be placed in a cash ISA with the remainder in a stocks and shares ISA.
New Year, New Allowance
The new tax year 2013/14 began on 6th April 2013, and that means that the new ISA limit of £11,520 is now effective. The system works in the same way as last year – you can invest the full amount into a stocks and shares ISA, or you can invest up to £5,760 into a cash ISA and the remaining balance into a stocks and shares ISA.
Making The Most of Tax Advantages
Do bear in mind that the annual ISA allowance is for every eligible adult, so if you’re one half of a couple, you and your partner can use this two your advantage. Between you, you could put up to £23,040 into ISAs this tax year – so now’s the time to get started! Click here to compare ISA options.