Tax advice of the week: Take advantage of new Isa rules

Anyone who will be 50 or over before 5 April next year should take note of new rules on Individual Savings Account which raise the tax-free savings limit.

Anyone who will be 50 or over before 5 April next year should take note of new rules on Individual Savings Account (Isas). Under the 2009 Budget, Isa limits will be increased from £7,200 to £10,200 in the 2010/2011 tax year. But for those aged 50, the limit will increase as of 6 October 2009.

So what should you do if you already have an Isa for this year? You can't open a new Isa of the same type, but you can open a cash Isa if you only have a shares Isa, or a shares one if you only have a cash one.

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