News
46 per cent of investors unsure on ISA limits
Nearly half of investors (46 per cent) with over £10,000 in investments are unaware of the ISA allowances for the next year, according to a survey published today by The Share Centre.
The survey found that of those who didn’t know the ISA limits, almost a third (30 per cent) underestimate the limits and one in seven (16 per cent) overestimate them.
Nevertheless, hunger for tax free investment remains high; over a third (34 per cent) say they plan to invest the full amount into their investment ISA allowance this year.
Investors also have strong opinions on the ideal level for the ISA allowance. Nearly half (46 per cent) believe the ISA allowance should be as much as an individual wants; only a fifth (21 per cent) agree that the current ISA limits are reasonable. The vast majority (75 per cent) say that limits should exceed the current amount.
| What do you think the ISA allowance should be? | |
| Less than £15,000 a year | 5 per cent |
| £15,000 a year | 21 per cent |
| £20,000 a year | 15 per cent |
| £25,000 a year | 8 per cent |
| More than £25,000 a year | 5 per cent |
| As much as you like | 46 per cent |
“The research shows that following the Chancellor’s Budget last year, many investors are yet to realise that they can shelter £15,000 from the tax man in an ISA,” said Graham Spooner, investment research analyst at The Share Centre. “This is a huge benefit for investors and they need to capitalise on it, especially when our research shows that appetite for a tax free savings vehicle is very high.”
“As of April, ISA savings can be inherited by a spouse, completely tax free. This is another string in the bow for ISAs and makes them very appealing for those approaching retirement age. It is important savers look to make the most of ISA investing in light of the tax benefits, along with the added draw of being safeguarded from Capital Gains Tax.”
