Homes and Property

More tax-free interest on savings

By Alex Sheridan
Millions of savers aged 50 or over can earn extra tax-free interest from next week, following an increase to Individual Savings Account (ISA) limits.

From 6 October, the amount that these savers can put into a cash Isa rises £1,500 to £5,100 a year, or to £10,200 in total for those investing in stock market ISAs.

The higher limits apply to over-50s opening new ISAs as well as those who have already taken out ISAs this tax year, so offering the potential to top up existing 2009/10 accounts. Younger savers have to wait until the new tax year next April to take advantage.

But aren’t savings rates near zero? Savings rates have fallen but it’s still possible to pick up three per cent - more from fixed-rate offers (see www.moneyfacts.co.uk for the top accounts). And an ISA isn’t subject to up to 40 per cent tax for higher-rate taxpayers.

However, with the stock market up strongly in recent months, some experts believe stocks and shares ISAs could be a better bet. With these, all income and profits are sheltered from tax.

How do I top up? This should be straightforward in most cases, though a few firms, including Egg, aren’t accepting the extra ISA allowance, while some may not give as good a deal on top-ups as on existing savings.



  • London’s epidemic of discounting

    A combination of greedy sellers, nervous buyers and unscrupulous estate agents who promise sky-high prices in order to tempt clients, is being blamed for an epidemic of discounting in the London property market, where a third of all homes for sale have had their original asking price slashed.

  • Only 639 new homes are for sale in Greater London

    The scarcity of land is changing the face of London as offices become homes and commercial centres go residential.

  • Homes gossip

    Goldie Hawn and Kurt Russell have reduced the price of their magnificent Malibu beach house; and electro-pop pioneer Gary Numan has put his "all pink" cottage, which enjoys acres of woodland in east Sussex, on the market.

  • New Homes Awards 2012: the winners

    From classy commuter mansions to city-centre apartments at NEO Bankside and first-time buys to penthouses, this year’s best new homes were awarded for innovative design, eco living and impressive architecture.

  • New homes bloom in Chelsea

    New townhouses and flats will divert the crowds from Chelsea's annual flower show this year, with the property market in SW3 something of a hardy perennial itself, growing stronger with each year.

  • Secret money-saving tips

    Times are tight but frugal life doesn’t have to be boring. Follow these secret money-savers - from discounts at Starbucks and the cinema, to free kids meals at restaurants.

  • Homes that slash your heating bills by 90 per cent

    The UK’s first “greenhauses” - highly efficient German-designed homes said to slash utility bills by 90 per cent, have been unveiled in west London.

  • The best new homes 2012

    Here we showcase this year's winners of our London Evening Standard New Homes Awards - the capital's property Oscars.

  • Property insider: Islington

    Well-connected Islington is a hotspot for City workers and young professionals who are seeking more space than a Square Mile crash pad without a long commute. We take a property tour of N1 and its surrounding neighbourhoods.

  • New Homes Awards 2012: the winners

    From classy commuter mansions to city-centre apartments at NEO Bankside and first-time buys to penthouses, this year’s best new homes were awarded for innovative design, eco living and impressive architecture.


Advertisement

Sign up for our e-newsletter

Sign up for weekly property news, design trends, decorating & gardening tips, offers and giveaways...

Terms & conditions (Usual opt-out rules apply)

Thank you for signing up

We hope you enjoy the H&P weekly e-newsletter,
which will be delivered to your inbox every Wednesday,
starting soon.

Terms & conditions (Usual opt-out rules apply)

Please try again

Sorry, your email address was entered incorrectly. Please click here to try again.

Terms & conditions (Usual opt-out rules apply)




*