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ISA investment limit ‘to increase by £470’


The amount that can be invested in an Individual Savings Account (ISA) is expected to rise by £470 next year, experts have said.


As announced in the Labour Government’s last Budget, increases in the annual investment allowance for cash and shares ISAs will in future be linked to the Retail Price Index (RPI).


It is believed that September’s rate of inflation, which was recently confirmed as 4.6%, will be used to calculate the April 2011 ISA investment limit.


As a result, the overall ISA investment limit will rise from the current level of £10,200 to £10,670 in April, of which £5,335 may be invested in a cash-only ISA.


The maximum investment in a cash ISA is currently £5,100 per year.


Tax-free ISAs were introduced 11 years ago and it is now thought that 20 million people in the UK have access to an account.

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