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.




  
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

ICO continues to fine nuisance call companies

The Information Commissioner's Office (ICO) have fined yet another ‘nuisance call’ company who have failed to adhere to their legal requirements under the Privacy and Electronic Communications Regulations Act.

EMC Advisory Services Limited, a Payment Protection Insurance (PPI) claims company, have been fined £70,000 for contacting individuals regardless of whether they are registered on the Telephone Preference Service (TPS). TPS operates a ‘do not call’ list, which means that marketing companies have to ensure that they do not phone people on this list, without previously having the permission to do so. It is a legal requirement that companies do not make sales calls to those on the list.

EMC Advisory Services Limited was re .....

22 Oct 2014 by

Kevin Pearce

 in 

Personal Finance

Full Article

If you have a Standard Life policy read on...

Standard Life policyholders owed an average of £3,000 need to step forward to stake their claim as time is quickly running out.

Those who have a share in the £113m have until 9th July 2016 to come forward after which point the money will be lost. In 2006 Standard Life demutualised and their 2.4m policyholders were left with an entitlement to shares or cash following the companies listing on the stock market. With less than two years to go until the deadline, 73,000 individuals have yet to claim what is rightfully theirs, including one person who is owed an estimated £120,000.

If you think this may apply to you the criteria to bear in mind is that you must have held a Standard Life with-profits policy that started before March .....

21 Oct 2014 by

Sophie Regester

 in 

Personal Finance

Full Article

Treasury to make pensions more flexible

The Treasury is now expected to add a little more freedom with regards to how savers can take lump sum payments from their pension

20 Oct 2014 by

George Coburn

 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