The new increased ISA allowance, 06th October 2009. Do you need a reminder?

My first blog communicated the changes in legislation that for those individuals aged over 50 to make a higher investment into ISA holdings in the current tax year.

The new allowance for stocks and shares investment increases from 06th October from £7,200 to £10,200. This will be the same from the next tax year (2010/2011) for all eligible investors from 06th April 2010. As an example, an ISA can be used to provide either tax-free income or tax free growth or a mixture of the two. From 2004, ISAs ceased to be able to recover tax deducted from UK dividend income.

It should also be noted that the cash ISA allowance is also increasing to £5,100 from £3,600 at the same time which some investors will find preferable to investing in stocks and shares. The maximum overall investment in a tax year is limited to £10,200.

Many investors have started their planning to use this new tax efficient opportunity for investment.

Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority. This blog is not individual advice and you should speak to your independent financial adviser for advice and guidance.