Following the increase in annual ISA subscription limits on 6 October 2009 (for eligible customers aged 50 or over in the 2009/10 tax year), the limits will be changing for all remaining eligible customers from 6 April 2010. This may impact on your savings and investments 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 be subject to the new increased limits from 6 April 2010. Those aged 50 or over on 5 April 2010 have already been able to take advantage of the limits from 6 October 2009.
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. All other eligible ISA customers can take advantage of the higher limit in the 2010/11 tax year - from 6 April 2010.
Don't forget to contact us from 15 March 2010 when we will have a number of offers to help you make the most of your savings and investments
