Consumers Not Geared Up for Change in ISA Limits this April

Share Article

Thousands of consumers could potentially lose out on their tax free allowance from the start of the new tax year. New research from Barclays shows that 42 per cent of consumers are unaware that new limits kick in for ISAs from 6 April 2010. In addition, almost three quarters don’t know how much they can invest into a cash ISA from the new tax year.

It’s surprising to see that the plans to increase ISA limits across the board haven’t really registered with UK consumers yet. We would urge people to review their savings to ensure they don’t miss out on their tax-free allowance for this year and from 6 April 2010 when the new limits apply to everyone.

Thousands of consumers could potentially lose out on their tax free allowance from the start of the new tax year. New research from Barclays shows that 42 per cent of consumers are unaware that new limits kick in for ISAs from 6 April 2010. In addition, almost three quarters don’t know how much they can invest into a cash ISA from the new tax year.

Chancellor Alistair Darling announced in last year’s Budget that the amount people could save in ISAs each year was being increased from £7,200 to £10,200, £5,100 of which can be held in a cash ISA. The new limit came into force from October 6th for people born before April 6th 1960 and 6th April 2010 for everyone else over the age of 18.

A worrying 70 per cent of people do not know the maximum they can invest into a cash ISA. Surprisingly, despite the changes taking place for the over 50s last October, 60 per cent of this age group still don’t know what their maximum ISA limit is.

Andy Gray, head of savings for Barclays said: “It’s surprising to see that the plans to increase ISA limits across the board haven’t really registered with UK consumers yet. We would urge people to review their savings to ensure they don’t miss out on their tax-free allowance for this year and from 6 April 2010 when the new limits apply to everyone.”

Regional figures reveal that some cities and towns are not as prepared as others. Over half of savers in Newcastle, Blackburn, Stoke, Brighton, Bradford, Oldham, Wolverhampton and Manchester are not aware that the limits are increasing from 6 April 2010. This compares with Newport, Worcester, Colchester, Cheltenham, York, Edinburgh, Portsmouth and Derby where at least two thirds of savers are aware of the changes.

The full figures per towns and cities:

Town / City    % who don’t know about increases    % of people who don’t know how much they can invest in a cash ISA
National average    42%    70%
Newcastle     57%    65%
Blackburn     56%    70%
Stoke     55%    70%
Brighton     52%    72%
Bradford     52%    72%
Oldham     51%    80%
Wolverhampton     50%    72%
Manchester     50%    65%
Middlesborough    49%    65%
Belfast     49%    63%
Ipswich     48%    72%
Cambridge     48%    71%
Leicester     47%    74%
Crawley     47%    59%
Wigan     46%    86%
Croydon    46%    74%
Coventry     46%    74%
Glasgow     45%    78%
Maidstone     45%    74%
Bolton     44%    74%
Guildford     44%    72%
Liverpool     44%    69%
Swindon     42%    76%
Wrexham    41%    74%
Sunderland     41%    72%
leeds    41%    71%
Southend    41%    70%
Tunbridge Wells    41%    63%
Peterborough     41%    60%
Plymouth     40%    79%
Bournemouth     40%    79%
Cardiff     40%    76%
Sheffield     40%    66%
Harrogate     40%    44%
Woking     39%    69%
Birmingham     39%    68%
Blackpool     39%    67%
Carlisle     39%    64%
Swansea     39%    63%
Lincoln     38%    75%
Truro     38%    71%
Northampton     38%    52%
Darlington     37%    75%
Aberdeen     37%    70%
Norwich     37%    62%
Chelmsford     37%    58%
Nottingham     36%    65%
Southampton     36%    63%
Gloucester     35%    83%
Exeter     35%    75%
Bristol     35%    72%
Portsmouth     34%    70%
Cheltenham     33%    66%
Derby     33%    48%
Edinburgh     32%    74%
York     32%    72%
Colchester     31%    86%
Worcester     30%    71%
Newport     26%    69%

Barclays has been allowing customers who were 50 or over on or before 5 April 2010 to invest up to £5,100 in a cash ISA. Barclays Golden ISA currently pays 2.58% AER, although customers who opened the account before 1st June 2009 will also receive their 12 month introductory bonus on the top-up amount as well as their existing funds.

Notes to Editors:
The research was conducted by Opinion Matters (3rd – 20th December 2009), sample size 4515.

Barclays is a major global financial services provider engaged in retail banking (current accounts and savings accounts), credit cards, corporate banking, investment banking, wealth management and investment management services, with an extensive international presence in Europe, the Americas, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 140,000 people. Barclays moves, invests and protects money and provides personal loans, home insurance, life insurance and other services for over 49 million customers and clients worldwide. For further information about Barclays, please visit our website http://www.barclays.co.uk .

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Retail Banking PR Manager
Barclays
+44 (0)20 7116 6145
Email >
Visit website