Tax Tip Week 40 - Aged over 50? - Tax savings of £4080 to be made
In the April 2009 Budget, the Chancellor increased the tax free investment limit for ISA's from £7,200 to £10,200.
Any person over 50 years of age qualifies for the increase in the 2009/10 tax year. It will apply to all other individuals from 6th April 2010. The tax year commences on 6th April ending 5th April following.
This means that a 40% tax payer can save £4,080, and £2,040 for 20% tax payers.
The ISA (Individual's Saving Account) was introduced in April 1999 and replaced Tessa's and Pep's.
Please see our guide on Individual Savings Accounts in our knowledgebase for further information.