Over-50s 'capitalising on Isa limit increase'

Investors over the age of 50 have more than doubled their contributions to share-based Isas since the government increased the tax-free allowance, it has been reported.

In the Budget 2009, published last April, chancellor Alistair Darling announced that the Isa limit would rise to £10,200 for over-50s, before being extended to all.

The higher limits have been available to older people since October 6th 2009, and will become universally available from April 6th 2010.

Adrian Lowcock, senior investment adviser at Bestinvest, claimed the response has been "huge" from investors taking up the extra allowance.

He said this has been "a ray of light in an otherwise grim outlook for tax benefits and wrappers".

However, Mr Lowcock commented he would like to have seen the additional allowance cover the whole population from the outset.

Concluding, he urged over-50s to top up their Isas as much as possible before April 5th 2010, as "taxes are set to rise for some time to come."

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2010-02-01 13:01:19 © Moneyextra.com