Isa limits set to be raised

Published on Saturday 14 March 2009 13:16

THE Government indicated it will raise the Isa limits in April's Budget to help pensioners struggling to live on dwindling funds, as the Bank of England reported that savings have fallen to historic lows.

Prime Minister Gordon Brown said: "We are looking at how the Individual Savings Account can be made more attractive for the future. We are trying, obviously, to make sure in an era of low inflation that the incentives to save can remain high."

Meanwhile, Egg, the internet bank, has launched a new cash Isa paying 2.50%. The Isa, which can be opened and managed online, is available to new and existing customers and allows deposits from 1 up to 3,600 per tax year.

Barclays has launched a new Isa paying 3.55%. The Golden Isa is available to new and existing customers and can be opened with 1 to 3,600. The 3.55% includes a 1% gross bonus for 12 months. Transfers in cannot be made from an existing Isa.

Tax returns mix-up

TAXPAYERS are being urged to scrutinise any demands for payment from HM Revenue & Customs after it emerged 20,000 taxpayers have been fined for filing their tax returns late despite submitting the forms in plenty of time.

HMRC admitted that processing errors were to blame.

The fine for filing tax returns late is 100, and charges collected have more than doubled over the last three years. Last year, 1.5 million taxpayers were charged almost 150m for late returns.

HMRC apologised to customers and promised it would not cash a cheque if a taxpayer had failed to notice the error.

Pension losses

NEARLY 200 employees of a company that has gone bust will lose some of their pension benefits after their schemes have been transferred to the Pension Protection Fund.

Haden Staff (HDI) Pension Scheme, Haden Staff (HDS) Pension Scheme and Thorndyke Limited Retirement & Life Assurance Scheme are the latest additions to the PPF.

They join 20,000 members of around 70 schemes whose pensions are already being bailed out by the safety net.

Rural paradise

RESIDENTS of Aberdeenshire have the best quality of life amongst rural areas in Scotland, according to the Rural Quality of Life Survey by Bank of Scotland.

Residents of Aberdeenshire are among the healthiest in the country and have one of the highest life expectancy rates, at 77 years for newborns.

East Lothian and Scottish Borders follow Aberdeenshire in the top three rural areas. These two areas have higher than average gross weekly earnings (of more than 525 per week) and an employment rate of around 80%.

East Lothian and Scottish Borders are also areas with low crime levels and good secondary school results.