The annual ISA subscription limits will change for some individuals from 6 October 2009 and for all other eligible individuals from 6 April 2010. This may impact on your savings and investment plans for the future, so we've prepared the following questions and answers to help you understand the changes.
How are the ISA subscription limits changing?
The Government is increasing the amount that individuals will be allowed to save or invest in an ISA each year:
- the overall subscription limit will increase from £7,200 to £10,200.
- the cash ISA subscription limit will increase from £3,600 to £5,100; and
- you can choose to invest the overall ISA allowance into a stocks and shares ISA.
- alternatively, you can invest up to £5,100 in a cash ISA and your remaining allowance into a stocks and shares ISA.
Will these changes affect me?
All eligible savers and investors will receive the new increased ISA subscription limits, although some individuals will be eligible for them earlier than others, depending on their age:
- those aged 50 or over on 5 April 2010 will be able to take advantage of the increased limits for the current 2009/2010 tax year from 6 October 2009; and
- the increased limits will apply for all other eligible savers or investors from 6 April 2010, which is the start of the 2010/2011 tax year.
I have an existing HSBC ISA, when can I take advantage of the new limits?
If you're aged 50 or over on 5 April 2010, and where your product allows it, you'll be able to top up your ISA from 6 October 2009. You won't be able to top up your ISA beyond the existing ISA limits before this date. All other eligible ISA customers cannot take advantage of these new limits until 6 April 2010
Changes to ISA subscription limits (PDF)
Don't forget to contact us from 6 October 2009 when we will have a number of offers to help you make the most of your savings
