Simpler savings under new ISA rules

Angela Eagle MP, Exchequer Secretary to the Treasury, today reminded savers of the reforms to ISAs (Individual Savings Accounts), which will take effect from Sunday 6 April 2008. ISAs will be simpler and more flexible and the overall annual investment limit will increase from £7,000 to £7,200, with the new cash limit of £3,600 up from £3,000.

Angela Eagle said: "The Government has introduced this package of reforms to make ISAs simpler and more flexible. This year, over 17 million existing ISA holders will benefit from these reforms. The reforms will also benefit all those people who are thinking about saving in an ISA for the first time. This move builds upon the success of ISAs, which this Government introduced in 1999 in order to develop and extend the saving habit and to ensure that tax relief on savings is more fairly distributed."