The measure

The individual savings account (ISA) limits (currently £10,200, of which £5,100 can be in cash) will be increased annually on 6 April in line with the Retail Prices Index (RPI). The limits will be calculated by reference to the RPI for the September before the start of the tax year.

The cash ISA subscription limit will be half the value of the stocks and shares ISA limit. If the RPI is negative, the ISA limits would remain unchanged.

Who will be affected?

All individuals who invest in ISAs.

When?

The change will be effective from the 2011/12 tax year onwards.