At Budget 2009 the Government announced that from 6 October 2009 the ISA limits will rise for people aged 50 and over to £10,200, of which up to £5,100 can be saved in cash. From 6 April 2010 the ISA limits will rise to these new levels for all savers.
The Government recognise that low interest rates, which are benefiting many people with mortgages, have meant that savers have seen their return from savings fall. In particular, this has affected people who are retired, or are approaching retirement, who are often more reliant on their savings income to meet day-to-day needs or fund discretionary purchases. As announced in Budget 2009, the Government are therefore taking targeted action now to help people aged 50 and over with their savings. The ISA limits are being raised for those aged 50 and over from 2009-10, enabling them to move more of their savings into a tax-advantaged ISA, rewarding those who have saved by improving their returns. The Government also recognise that people need to be supported to save as the economy emerges from the downturn, and therefore the ISA limits will increase to the same level for all savers from April 2010.
All savings incentives are kept under review. The current ISA limits mean that the majority of people can hold all of their savings in a tax-advantaged way.
As announced at Budget 2009 the limit will increase to £10,200 for those aged 50 and over on 6 October 2009, and for all savers from 6 April 2010.