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New ISA Subscription Limits

Changes to ISA subscription limits

The annual ISA subscription limits changed for some individuals from 6 October 2009 and will change for all other eligible individuals from 6 April 2010. Please read the following questions and answers to help you understand the changes.

How are the ISA subscription limits changing?

The Government is increasing the amount that individuals are allowed to save or invest in an ISA each year:

The overall subscription limit is increasing from £7,200 to £10,200
The cash ISA subscription limit is increasing from £3,600 to £5,100 and;
You can choose to invest the overall ISA allowance in a Stocks and Shares ISA
Alternatively, you can invest up to £5,100 in a Cash ISA and your remaining allowance in a Stocks and Shares ISA.

Who will be affected by these changes?

All eligible savers will receive the new increased ISA subscription limits, although some individuals are be eligible for them earlier than others, depending on their age:

Those aged 50 or over on or before 5 April 2010 are able to take advantage of the increased limits for the current 2009/2010 tax year from 6 October 2009; and
The increased limits will apply for all other eligible savers or investors from 6 April 2010, which is the start of the 2010/2011 tax year

If I have an existing cash ISA with Teachers Building Society, when can I take advantage of the new limits?

If you’re aged 50 or over on or before 5 April 2010, you are able to top up your ISA now. We will add any additions from the new limits to whichever cash ISA account you have already subscribed to in this tax year. You will not be able to top up your ISA beyond the existing ISA limits before this date. All other eligible ISA customers cannot take advantage of these new limits until 6 April 2010.

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