Changes announced in the 2009 Budget statement altered the way in which annual subscription limits are set. Here we explain the changes and show you how we help ensure you do not inadvertently oversubscribe to an ISA in the 2009/10 tax year.
The changes announced in the 2009 Budget statement introduced a split-level subscription allowance, which means that ISA customers who will be aged 50 or over as at 5 April 2010 can subscribe an additional amount to their ISA. The additional allowance applies from 6 October 2009.
The subscription limit, and how you use it, depends on your age, as at 5 April 2010.
Age as at 5 April 2010: |
50 or Over (i.e. born on or before 5 April 1960) |
Under 50 |
Total subscription limit from 6 October 2009 |
£10,200 |
£7,200 |
Cash ISA maximum |
£5,100 |
£3,600 |
Stocks & Shares ISA maximum |
£10,200 LESS any amount subscribed to a Cash ISA in the current tax year |
£7,200 LESS any amount subscribed to a Cash ISA in the current tax year |
For accounts opened prior to 6 October 2009, the current limits (£7,200 / £3,600) will apply until that date. From 6 October, new customers who will be aged 50 or over as at 5 April 2010 can immediately use the increased limits and eligible existing customers can top-up their accounts.
The increased limit will then apply to ALL customers with effect from 6 April 2010.
When you pay into your ISA online we will show you how much you have subscribed in the current tax year to date, and how much remains available for subscription.
The 'Further subscription allowed' figure will NOT include any sums have subscribed to a Cash ISA and will be based on the maximum possible subscription based on your age as at 5 April 2010. You should however take care to deduct from the amount shown, the value of any Cash ISA subscription in the current tax year.
The last date on which you can open and subscribe to a Selftrade Shares ISA is 5 April 2009. Whilst opening an ISA is quick and easy online, indeed you could be up-and-runing in just ten minutes when you pay into the account onlien witrh a debit card – we would suggest you do not leave it until the last minute. Your card provider might not approve a transaction that is outsidde your nonrmal range and your money trandfer may therefore miss the midnight deadline: any money paids in after that time will count as a subscription towards a 2010/11 ISA.
If planning to pay into your ISA using any method other than via your debit card online, please click here for details of payment options and deadlines >
As you'll probably be aware, an ISA is a tax-efficient wrapper designed for longer-term savings, the value of the investments can fall as well as rise, tax rules can change and you may get back less than you originally invested. Whilst we don't offer investment advice, we do offer a wealth of information and support to help you make the most of your investments.