From the new tax year new limits for your ISA will be in place.
As of 6th April £3,600 can go into your cash ISA or up to £7,200 into stocks and shares.
The yearly total savings limit is £7,200.
ISAs have been around since 1999 and limits have only increased by 3% - not exactly a thrilling track record for what was launched by the government of the day to encourage saving by the wider public and to replace the unwieldy PEP.
The disproportionate rise in the cash allowance [up from £3,000] means that maxing out here will restrict a person’s investment in stocks and shares to £3,600 - a drop from the current limit of £4,000.
It is hoped taking away the mini/maxi epithets will remove a degree of confusion for customers. The attraction of no income tax and no capital gains tax has always pulled in high net worth customers who habitually pump in their full allowances as part of their tax planning but it has never been proven whether ISAs as a concept have encouraged saving per se.
With UK average household debt as a proportion of GDP being the highest in Europe, this seems unlikely.
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