The Government has announced that the annual ISA investment limit will be increased from £10,200 to £10,680 with effect from 6 April 2011. For a couple, this means that £21,360 can be invested with no tax on dividends or interest, no capital gains tax on sale and no need to account to the Revenue.
With the benefit of the tax advantages, it has been calculated that a 35-year old investor would accumulate a fund of £679,077 by age 65, assuming an average annual return of 4.5%.
