ISA sales double following increase in tax allowance

ISA sales have more than doubled since the Government increased the tax-free savings allowance, figures showed today.

The amount of money put into equity ISAs reached a record level in October last year, when the annual limit for the amount the over-50s can save in the accounts was raised from 7,200 to 10,200.

There was a further spike in the sums invested in ISAs in April this year when the higher limit came into force for younger age groups, according to the Investment Management Association (IMA).

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Net investments into equity ISAs, once people cashing in or moving their investments were stripped out, reached 388m in October 2009, the highest level for the month since the accounts were introduced in 1999.

The IMA said 1.16bn went into ISAs in April – the highest monthly total for nine years.

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