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

More than a fifth of spending on cards is now done online

More than 20% of all shopping on credit and debit cards is expected to be performed online in 2015, according to figures from research by Barclaycard. According to the credit card company, 22% of card spending in 2014 was done online and based on this information Barclaycard are expecting as much as 25% during 2015.

Total online spending is up by a quarter in the previous four years, and the driving force for this may well be due to be the increase in smartphones and tablets, meaning that consumers can shop wherever they are with no limitations.

Although this increase comes as no real surprise to many, the research indicates that the fastest growth in online shopping actually comes from the take-away sector, with an increase .....

30 Mar 2015 by

Ben Tumilty


Personal Finance

Full Article

Students Loans Company overcharging 50,000 people a year

Following a Freedom of Information request published by the Student Loans Company, it has been found that more than 50,000 people a year have loan money automatically deducted from their salary when it wasn’t due in the first place. The Treasury receives an extra £40 million a year from graduates who are being overcharged on their student loan repayments, costing an average of £570 per person. The errors are made as a result of an ‘antiquated’ process in the way that individual salaries are paid to the Student Loans Company.

Currently individuals repay student loans as a proportion of their take-home pay – this information is passed from employers to HMRC, who in turn pass this on to the Student Loans Body. However, while employers .....

30 Mar 2015 by

Kirstie Brown


Personal Finance

Full Article

Energy suppliers still holding on to your money!

A recent survey has found that there are over 3 million households that are due a refund from their previous energy supplier

27 Mar 2015 by

Amy Flower


Personal Finance

Full Article

Accepted Payment Methods: VISA, MasterCard and Direct Debit

© Copyright Credit Reporting Agency Ltd 2000 to 2015. All Rights Reserved.

United KingdomAustraliaGive Me Credit United States

Customer Feedback