Isas set for £480 boost

The average Isa allowance is set to rise by £480 next year after the Office for National Statistics announced that inflation measured by the retail prices index stood at 4.6% in September 2010.

In this year’s Budget, former chancellor Alistair Darling announced that the average Isa allowance will rise in tandem with September’s RPI for the preceeding tax year.

This means that the allowance should rise from £10,200 to £10,680 as figures will be rounded up to the nearest £120 in the next tax year. (article continues below)

HMRC has yet to confirm the rise but says it will publish its new rates in the near future.