What is the 2013/14 ISA allowance?

The publication of the latest price inflation figures for the year to September 2012 give us an indication of the Individual Savings Account (ISA) allowance for the 2013/14 tax year.

We expect the 2013/14 ISA allowance to increase from £11,280 to £11,580.

This is slightly higher than the 2.2% Consumer Prices Index (CPI) measure of price inflation for the year to September 2012, as the allowance needs to be easily divided by twelve.

This means that investors should be able to contribute £965 a month into an ISA during the 2013/14 tax year.

Alternatively, they should be able to save up to £5,790 into a cash ISA and the unused balance of their annual ISA allowance into an investment ISA.

We will need to wait for confirmation of these figures in the Autumn Statement which the Chancellor will deliver on 5th December 2012.

Do you have an existing ISA portfolio? We work with clients in Surrey, London and the surrounding counties to build, manage and protect their wealth. Do get in touch to arrange an initial meeting which is at our expense and without obligation.

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