Financial Adviser Hastings

CPI slows as ISA increase calculated


When the new tax year starts, it will bring with it a welcome boost for savers in the form of an increase in the amount that can be invested tax free in an ISA.

The Chancellor, George Osborne, tied increases in the ISA limit to the Consumer Price Index (CPI) from April 2012. With HM Revenue & Customs (HMRC) traditionally using September’s results to calculate the following year’s figures, this generated an increase of 2.2 percent, or £248.16.

Unfortunately, this is a drop from the 2.5 percent CPI level of just a month earlier.

As HMRC pledged to round the limit up to a multiple of 12 to make it easier for monthly savers to calculate their funds, this would result in a new ceiling of at least £11,532, and potentially as much as £11,580, of which half could be invested in a Cash ISA.

These figures will be confirmed in the Chancellor’s Autumn Statement, to be delivered on 5th December 2012.

Connect with us
mcphersons Downloads
Financial Adviser Hastings
mcphersons News
18
Sep
Preparing yourself financially for Brexit

There was plenty of doom and gloom guesses around the …
[ read more ]

6
Sep
How to retire with more

Read our article in Money Matters to find out how!

15
Aug
Business Relief – an inheritance tax relief available to all

What is it? Inheritance tax is chargeable at the flat …
[ read more ]