New Isa rules for the over 50s

Changes to the annual savings limit on Isas will give over 18 million investors the opportunity to increase their tax-advantaged savings, and would directly benefit over five million individuals

The 2009 Budget introduced a long overdue increase in the amount that can be saved into an individual savings account (Isa) each year. Prior to this the allowance had budged a measly £200 since the inception of Isas a decade earlier. The new annual limit, of £10,200 (previously £7,200), came into force on 5 October for the over 50s, and will be extended to all Isa investors from the start of the 2010/11 tax year on 6 April 2010. Because the new limit has been introduced part way through the current tax year, HM Revenue and Customs has deemed the over 50s to be anyone who is already 50 or ov...