More confusion for ISAs says BDO

New limits welcomed by savers

The new ISA limit of £10,200 will be welcomed by many savers; particularly those who are more suspicious of the personal pensions regime. The relief is increased for those aged 50 or over with effect from 6th October 2009 and for everyone else from 6th April 2010. The existing 50 per cent limit applied to the sum which can be saved in cash, will continue to apply so that the maximum cash allocation will become £5,100 pa.

Stephen Herring, Senior Tax Partner at BDO, says, “One wonders why the Chancellor felt it necessary to postpone the increase for those under 50 until 6th April 2010 which will, inevitably, cause some confusion amongst savers. In my view, the Chancellor should have adopted a limit of £10,000 with immediate effect for all investors. This would have simplified the rules and removed a temporary and arbitrary age limit”.

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http://www.bdo.uk.com/services/tax-services/budget-2009.html

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Notes to editors:

BDO LLP operates across the UK with over 3,000 partners and staff. BDO LLP is a UK limited liability partnership and the UK Member Firm of BDO International. BDO international is a world-wide network of public accounting firms, called BDO Member Firms. Each BDO Member Firm is an independent legal entity in its own country. The network is coordinated by BDO Global Coordination B.V., incorporated in The Netherlands, with its statutory seat in Eindhoven (trade register registration number 33205251) and with an office at Boulevard de la Woluwe 60, 1200 Brussels, Belgium, where the International Executive Office is located. In the UK the Belfast Firm is operated by a separate Partnership known as BDO - Belfast.

BDO LLP and BDO - Belfast are both authorised and regulated by the Financial Services Authority to conduct investment business.

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Best Workplace UK - Financial Times 2008
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