REV BN 02: Retention Of ISA Limits

Who is likely to be affected?

1. All ISA savers and providers. General description of the measure

2. The current ISA limits of £7000 maximum and £3000 for cash will be retained until 5 April 2010. The existing ISA limits were due to fall from £7000 maximum and £3000 in cash to £5000 maximum and £1000 in cash from 6 April 2006.

Operative date

3. The measure will take effect from 6 April 2006.

Current law and proposed revisions

4. The current ISA limits are set out in regulation 4(2) of the Individual Savings Account Regulations 1998. These state that the maximum limit will be £7000, of which £3000 can be in cash, until end of tax year 2005/6 and £5000 and £1000 respectively for tax year 2006/7 onwards.

5. The retention of the existing limits will mean a change to this regulation to delay changes to the limits until the end of the tax year 2009/10.

Further advice

6. If you have any questions about this change, please contact David Ensor at Capital and Savings on 020 7147 2835 or email at david.ensor@ir.gsi.gov.uk Information about Budget measures is available on the Inland Revenue website

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