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Budget 2016: The proposals in detail – changes to ISA’s

The current £15,240 ISA limit is frozen for 2016/17

The Junior ISA limit remains at £4,080 for 2016/17

The ISA limit increases to £20,000 from 6 April 2017

From 6.4.2017 there will be a new “Lifetime ISA” account where investors aged between 18 and 40 who save up to £4,000 a year will have 25% (up to £1,000) added by the government.

The money can he used to purchase your first home or provide tax free income for retirement.

Savers in the current “Help to Buy” ISA’s   will be able to transfer their savings to this new account.

It is hoped that these new measures will encourage younger people to save.

Personally I think it is wrong to have a targeted proposal based on age. Why is this new account not open to everyone?

Andy Scott

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