Wednesday, March 3, 2010
According to research from Virgin Money, the new ISA allowance introduced by the Government in quarter three of last year has proved extremely popular with older investors doubling their lump sum contributions.
Contributions to income funds rose 130% from 6th October to 5th January compared with the same period the year earlier. The 6th of October saw the introduction of the new ISA allowance which allowed savers over 50 years old to invest up to £10,200 tax free. This is set to apply to all ages from April 6th next year. Going on past performances, we should see a surge of people taking advantage of the tax breaks.
The Government is keen to encourage people to save especially during these difficult financial times. Gordon Brown the then Chancellor first introduced the ISA in 1999 and since then the total amount a person can invest into an ISA went up to £7,200 which was increased to the over 50s to £10,200 in October last year. This can be divided into £5,100 into a stocks and shares ISA and £5,100 into a Cash ISA.
However, recent government statistics show that despite 19 million people in the UK having an ISA, over 14 million people are not using their full ISA allowance. This is an astonishing figure and if this applies to you, you need to be aware that there is just three months left of the tax year. This means if you have money saved from a previous tax year, you could transfer the amount from a cash ISA to a stocks and shares ISA without affecting your annual ISA investment allowance.
Fidelity is the world's largest mutual fund company. In the UK they provide a range of savings and investment solutions for both individuals and corporations. From ISAs to pensions advice, visit http://www.fidelity.co.uk for all your investment needs.
Article Source: http://EzineArticles.com/?expert=Britney_Henderson
