ISA limits increase
In the March and June Budgets, the respective Chancellors both announced that the total annual ISA investment limit would be index-linked. For now that means a link to the RPI.
The Government has now confirmed that the 2011/12 ISA total limit will be £10,680. The logic behind this odd-looking figure is that it produces an exact multiple of £10 when it is divided by 12 to calculate maximum monthly contributions. The maximum cash component will be £5,340 (£445 a month).
The annual ISA limit remains relatively modest – back in 1991 it was possible to invest £9,000 a year in PEPs (the ISA’s predecessor).
