As of 6th October 2009, the over 50s have the opportunity to make use of the higher ISA allowance announced in the 2009 Budget. Those under 50 will have to wait until 6th April 2010 before they can make use of the higher limits.

For the over 50s, the ISA allowance increases to £10,200 of which up to £5,100 can be invested in a Cash ISA. This is a useful increase and makes ISAs a much more valuable tax planning proposition.

Readers may recall that the annual ISA allowance rose to £7,200 in April 2008. Our view at the time was that this was hardly generous as in real terms, ISA limits had been steadily decreasing since 1999. £10,200 therefore feels like a much fairer level.

If you would like to review your ISA provision, please get in touch.