Member News
Alistair Darling has heralded an increase in the annual limit for individual savings accounts.
They were introduced in April 1999, replacing Tessas and Peps, but the annual limit has only been increased once, currently standing at £7,200.
The chancellor said he would increase this to £10,200, of which £5,100 can be saved in cash.
"This new limit will be introduced this year for those aged 50 or over, and will come in next year for everyone else," he said.
In other moves to help savers, it was confirmed that the capital disregard on Pension Credit will rise from £6,000 to £10,000.
Stakeholder Response: Investment Management Association
Responding to the Budget, Richard Saunders, chief executive of the Investment Management Association, said:
"The increase in the ISA limit to £10,200 is a welcome fillip for savers, and the government is to be congratulated for taking action to restore the ISA's value. We look forward to working with the authorities on the practicalities of the proposed phasing of its introduction.
"We need to see further details about the proposed reductions in pensions tax relief. But the chancellor himself stressed in his speech the importance of saving for retirement. It would be perverse therefore if the overall effect of the Budget measures were a net reduction in incentives to save."
Dods Parliamentary Communications Ltd