ISA limits increase announced
An ISA account is free of all Income Tax and Capital Gains Tax. Eligible holdings are cash (up to half the maximum), national savings products, life insurance products, stocks and shares. Account holders may make withdrawals at any time without the loss of tax relief.
The ISA limits increase annually in line with inflation. The subscription limit for the 2013-14 tax year is £11,520 of which £5,760 (half) can be invested in cash.
For the 2014-15 tax year, the limits will increase to £11,880 and £5,940 respectively. The Junior ISA investment allowance for the tax year 2014-15 will be raised to £3,840 (from £3,720), as will the Child Trust Fund investment allowance.