Autumn Statement 2015: savers suffer as Isas and Jisas frozen

Frozen Isas

The Chancellor has put a freeze on Isa allowances for 2016-17, which remain unchanged at £15,240.

He has also frozen Junior Isas and Child Trust fund limits, which will remain at £4,080.

An increase in Isa allowances would have been based on September’s inflation figures, which were negative, at -0.1%.

Commenting on the freeze, Maike Currie, associate investment director at Fidelity International, said: “The Chancellor has delivered a kick in the teeth for Isa savers by freezing the allowance.

“It is important that savers use as much of the current allowance as they can and, in particular, it makes good sense to take advantage of the fact that the allowance applies to an individual, so for a couple this year’s Isa allowance is a generous £30,480.

“Don’t forget, it’s a use it or lose it allowance. Unlike with pensions, there is no ability to carry forward previous years’ allowances if you don’t get round to investing by the end of the tax year.”

Gareth Shaw, head of consumer affairs at Saga Investment Services, added: “Isas are an integral part of the retirement-planning process – indeed more than 12 million over-50s now hold an Isa – and the significant savings they’ve have built up can help them generate a retirement income tax efficiently.

“The Isa allowance has become a lot more generous, but the freeze will disappoint all those using these popular accounts to fund their retirement."

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