Interim changes to the ISA Subscription limits for over 50s

On 6 October 2009, the ISA subscription limit for investors who will be aged 50 or over during the current tax year will be raised to £10,200 of which up to £5,100 can be saved in a cash element ISA.

How does this affect me?

Currently, you are allowed to invest a total of £7,200 in each tax year into an ISA comprising of no more than £3,600 in a cash ISA with the balance in a stocks and shares ISA (up to the maximum of £7,200 between both).

From 6 October 2009, the ISA subscription limit will increase to £10,200 for anyone eligible to invest in an ISA who was born on or before 5 April 1960 (that is, who will be aged 50 or over during the current tax year). Up to £5,100 of the new ISA allowance can be saved in a cash ISA with one provider. The remainder of the £10,200 can be invested in a stocks and shares ISA with either the same or another provider. Alternatively, the full £10,200 can be invested in a stocks and shares ISA with one provider.

These higher limits will apply to all eligible ISA investors with effect from 6 April 2010.

The Building Societies Association has introduced a new leaflet that explains the main features of ISAs in an easy to read question and answer format, and includes the higher subscription limit for ISA savers aged 50 or over. To download a copy of the leaflet please click here.

For more information on the changes to ISA accounts visit your local branch or call us on 0121 557 2551.