ISA tax allowancesto go up by £500

The amount of money people can save tax-free is set to rise by nearly £500 next year.

The annual ISA allowance will be increased from 10,200 to 10,680 on April 5. The Government announced in the Emergency Budget that it would increase the ISA allowance each year by the equivalent of Retail Price Inflation in September.

As many people have monthly saving plans, the figure should be easily divisible by 12, so it has set the new limit at 10,680 for the 2011-12 tax year.

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