Tax advice of the week: make the most of new Isa limits

If you will be over 50 on 6 October, you can start taking advantage of the new Isa limits, says Jessica Bown in The Sunday Times. While most of us won't be able to use the new £10,200 allowance until next April, anyone over 50 can increase their investments to the new limit from 6 October.

But if you invest in your Isa via monthly contributions, you can start reaping the benefits now. Previously, you couldn't invest more than £600 a month without exceeding the £7,200 limit. But you can now up your monthly amount to £850 without hitting the £7,200 ceiling before October, says Hargreaves Lansdown.

But remember that you can't open more than one Isa a year and many providers only accept one payment a year. So speak to your provider about whether you can start making monthly contributions if you don't already do so. If you have yet to open an Isa this tax year ending 5 April 2010 then the best cash Isa currently available, according to Moneyfacts.co.uk, is Barclays Bank Golden Isa, which pays 3.61% annual equivalent rate with no cap on deposits.

Start your trial of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up