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Budget 2017: ISA limits unchanged, but JISAs & CTFs increased

Budget 2017: ISA limits unchanged, but JISAs & CTFs increased

The annual allowance for Individual Savings Accounts (ISA) will remain unchanged at £20,000, although limits on Junior ISAs and Child Trust Funds will rise in line with consumer price inflation (CPI).

This will take their limits up to £4,260, chancellor Philip Hammond said.

The lifetime allowance on pensions will increase in line with CPI, taking it up to £1.03 million for 2018-19.

Les Cameron, retirement expert at Prudential, said: 'It’s good to see the lifetime allowance increase is going ahead as planned. This will see a saving of up to £16,500 for those with large funds.'

Hargreaves Lansdown head of policy Tom McPhail added: 'No news is good news for pension investors; the stability of no change is a welcome relief after years of political interference and the salami-slicing of reliefs and allowances.

'There may have to be further changes at some point in the future; higher rate relief in particular is still likely to be scrapped as soon as a government feels it is strong enough to do it; in the meantime investors can make hay while the sun shines.'

At the same time, the Save As You Earn Scheme will be amended so that employees on parental leave will be able to take a 12 month pause from saving, up from six months currently. This will come into effect from 6 April 2018.

 

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