Budget 2010: ISA limits to rise to £10,200

The Chancellor has responded to industry calls to raise future ISA allowances in line with inflation.

Alistair Darling also confirmed the annual ISA limit will rise from £7,200 to £10,200 from next month. Groups including the IMA have been calling for this move to help encourage savers into the tax efficient savings vehicles. "We welcome the increase in the annual ISA limit for everybody from £7,200 to £10,200 for 2010/11 and the continued commitment to increase this limit in line with inflation," Towry Law head of advice policy John Richardson says. "However to really encourage the savings culture the limits need to rise more substantially and, in real terms, faster than in line w...