Raise ISA limit, says savings industry

Raise ISA limit, says savings industry

LONDON (Reuters) - Industry experts have welcomed government plans to extend tax-free savings indefinitely but called for a rise in investment limits on ISAs.

The 7,000-pound annual limit has been unchanged for seven years.

Ed Balls, Economic Secretary to the Treasury, said on Wednesday the government would simplify the ISA regime and guarantee its future beyond 2010.

The tax-free accounts were introduced in 1999 for an initial 10-year period. Of the 7,000 pounds per year that individuals can pay into an ISA, 3,000 pounds can be held in cash.

Peter Vipond, director of financial regulation and taxation at the Association of British Insurers, said the news acted as a "signal to consumers that the government will provide an environment that encourages a savings culture".

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