We use a minimal number of cookies to enhance your browsing experience - you can change your settings at any time.

GREAT PRIZES TO BE WON EVERY DAY IN OUR CRACKING CHRISTMAS GIVEAWAY - FIND OUT MORE

checkmyfile
The UK's only Multi Agency Credit Report

Take a FREE 30-day no obligation trial. Call 0800 612 0421 9am-5pm, Monday to Friday for help.




  
Forgotten Password? Not a Customer? Sign Up

ISA limits raised for 2014

Posted in 'Personal Finance' by Sam Twyford

21 October 2013

The tax-free annual allowance for ISA contributions in 2014 is expected to rise to around £11,760 from April next year, up from its current limit of £11,520 per annum.

Half of this amount can be deposited into a cash ISA - £5,880, while Junior ISA contributions will increase to £3,840 from £3,720.

The ISA allowance is calculated based on the rate of inflation from the previous year in September. This week it was revealed that September's inflation rate was higher than anticipated by the markets at 2.7%, compared with the expected level of 2.4 or 2.5%.

The formula for working out the increase in the ISA allowance involves taking the September Consumer Prices Index figure and applying this to the previous year’s allowance. By then rounding this up to the figure nearest divisible by £120, this makes it easier for savers to make a rounded monthly contribution.

ISA's allow individuals to deposit a certain amount each tax year to avoid paying tax on the amount earned through interest. This can be classed as a tax free savings or investment accounts as offered by a financial institution, which allows money to be split equally within the annual limit between savings accounts and investments such as shares and funds.

There are currently 15 million ISA accounts in the UK, but these are mostly cash ISA's with an average of £3,900 deposited in each.

Due to growing concerns of the number of ISA millionaires, there is rumour that the Treasury is considering placing a cap of £100,000on the total amount that can be held in an ISA to curb benefits for savers viewed as wealthy.

Due to the compounding interest impact of the amount in the ISA account over time, some savers have taken their savings to well over £1m.

Sam Twyford is a Credit Analyst at Checkmyfile, has a degree in Business Studies and is an Associate of the Institute of Credit Management. He can be contacted at sam.twyford@checkmyfile.com

Sam Twyford

Sam has a degree in Business Studies from Bristol University West of England, and is an Associate of the Institute of Credit Management. He is a County football player and has captained local teams at both Truro and St Ives.

Sam is a Credit Analyst at checkmyfile.

Related Articles

Googlebox favourites to give mortgage advice

The Government announced in the summer that it would be offering free and impartial financial advice regarding pensions. So far we have heard little more about the options available for this free advice but now pension provider Standard Life has taken the initiative, enlisting popular Gogglebox-ers Steph and Dom Parker to help educate customers on reforms.

A short film shows the couple, known on the cult TV show for their boozing, speaking to various pub patrons about their understanding of pensions. The plan is to demystify pensions; explaining the changes under new reforms and clear up any misunderstandings those entering pensionable age may have.

Steph Parker says, “Pensions aren’t the easiest things to get your head aroun .....

18 Dec 2014 by

Kelly Luff

 in 

Personal Finance

Full Article

Pros and cons of the store card

We have all been at the register, ready to pay, when the sales clerk asks if you are interested in one of their own store credit cards. If you say no you can expect to hear a long sales pitch but sign up and you get a big discount on the purchase you are about to make. Tempting.

There is usually an instant discount, often as much as 20% off, so it’s easy to see why thousands of us spontaneously sign up. Hundreds of pounds can be saved instantly on your shop by doing so. But it’s easy to say ‘yes’ without thinking about the possible consequences, especially with regards to making repayments and the effect on your credit worthiness.

“You should never feel pressured to add a new credit card to your wallet,” says Gerri Detweiler .....

17 Dec 2014 by

Rebecca Stains

 in 

Personal Finance

Full Article

Energy bills to affect the poor the most

Rising household energy bills will have the greatest impact on the UK's poorest families

16 Dec 2014 by

Amy Flower

 in 

Personal Finance

Full Article

Accepted Payment Methods: VISA, MasterCard and Direct Debit

© Copyright Credit Reporting Agency Ltd 2000 to 2014. All Rights Reserved.

United KingdomAustraliaGive Me Credit United States

Customer Feedback