ISA's (Individual Savings Accounts) - Are to be extended indefinetly
Personal_Finance / ISA's Nov 04, 2006 - 12:00 AM GMTBy: Phillipa_Green
The UK government has said that it intends to extend the tax free status of the ISA savings scheme, with no plans to end the tax free status.. The Isa's were due to expire in April 2010, but the Treasury minister Ed Balls has announced that the scheme would now become permanent instead.
In addition, Mr Balls commented that the distinction between mini-Isas, which allow for investments of up to £4,000 in stocks and shares and £3,000 in cash, and maxi-Isas, which allow investments of up to £7,000, including up to £1,000 in life insurance, would be abolished.
"The government is committed to Isas and we are keen to build on their success," Mr Balls said. After the first year of the scheme it was announced that thousands of Britons had illegally opened both a mini and a maxi-Isa, but such problems have now been ironed out. Over 16 million Britons currently use one of the two savings schemes.
The overall annual contribution limit for Isas will continue to be "at least" £7,000. That suggests ministers may bow to the investment industry's demands and raise the limits to allow those who can afford it to invest larger sums as the ISA limit has been £7,000 since 1997.With over 300 billion invested in cash and shares isa's
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