We use a minimal number of cookies to enhance your browsing experience - you can change your settings at any time.
checkmyfile
The UK's only Multi Agency Credit Report

Take a FREE 30-day no obligation trial today. Call us on 0800 612 0421 for assistance.




  

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

Retail prices set to increase if Scotland goes independent

Supermarkets, retailers and banks have been quick to issue warnings about the potential increased costs if Scotland goes independent.

Justin King of Sainsbury’s emphasises the dangers of cutting ties with Scotland which he believes will see a rise in supermarket prices, retailers having to put investments on hold and Scottish food producers losing out to British competition.

As an example he says, “In many supermarkets, customers today express a preference for their beef to come from the UK, and if Scotland’s not part of the UK, I could see that having an impact on their sales of products like that”.

John Lewis and Asda have also expressed concerns for price increases due to the increased costs of trading with Scotla .....

17 Sep 2014 by

Jasmin Stopford

 in 

Personal Finance

Full Article

Interest-free credit cards more popular than ever

Advertising of 0% interest rate deals for credit cards has really gathered pace over the last year, and the popularity of these cards seems to be increasing significantly month by month.

Astonishingly 42% of all borrowing made on credit cards in July did not incur any interest as consumers make use of 0% interest offers and balance transfers. The British Bankers Association (BBA) confirmed this is an increase from 34% two years ago and is also linked to a 5.3% increase in total credit card borrowing reported by providers during the same period. It seems these 0% offers are fuelling a continued growth in the amount of ‘free’ credit taken on credit cards, but there are warnings that these offers in particular need to be clearer on th .....

17 Sep 2014 by

Ben Ryland

 in 

Personal Finance

Full Article

Big Six energy firms ordered to refund 3 million households

Households are due for an average refund of £50 following a ruling by regulator OFGEM

16 Sep 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