New ISA rules to be introduced
The revised system for Individual Savings Accounts starts on 6 April 2008, making the tax-efficient vehicles simpler and more flexible.
The overall annual investment limit will increase from £7,000 to £7,200, with the new cash limit of £3,600 up from £3,000.
Angela Eagle MP, exchequer secretary to the Treasury, said: “The Government has introduced this package of reforms to make ISAs simpler and more flexible.
“This year, over 17 million existing ISA holders will benefit from these reforms. The reforms will also benefit all those people who are thinking about saving in an ISA for the first time.
“This move builds upon the success of ISAs, which the Government introduced in 1999 in order to develop and extend the saving habit and to ensure that tax relief on savings is more fairly distributed.”