ISA limits will now increase each year in line with the increase in CPI
The need for long-term care and how it should be paid for is arguably one of the greatest causes for concern among our growing elderly population. Almost half a million people are now in residential care homes, nursing homes and long stay hospitals.
Each year you can deposit your savings into a tax-efficient Cash and/or Stocks and Shares Individual savings Account (ISA).
The overall limit for the tax year ending 5 April 2012 was £10,680 and this has gone up to £11,280 (or £940 per month) for the 2012/13 tax year starting on 6 April 2012. Of the £11,280 overall limit, up to £5,640 can be saved in a Cash ISA.
Following the publication of price inflation figures for September 2011, the ISA limits are now increased each year in line with the increase in CPI. For ease of planning, the limits are then rounded up to be easily divisible by 12. This makes it easier to calculate the monthly allowance.
The higher ISA allowance represents good news for savers and investors who want to protect their returns from tax and aim to achieve a net return to keep pace with high levels of price inflation.
The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested. Past Performance is not a guide to future performance.