Life Isa allowance to rise

government plans to increase maximum annual investment in life assurance isa to £7,000

The Government intends to raise the maximum annual investment in a life assurance Isa from £1,000 to £7,000. Its plans, laid out in its response to Sandler, should allow life offices to compete on a level playing field with fund management groups in the Isa market. Barry O'Dwyer, marketing director at Standard Life, said the new regime will allow life offices to offer more competitive Isa products and will lead to lower charges across the board for Isa investments. He estimates the mutual would be able to offer a range of funds with an initial fee of 3% and an annual of 0.75%. 'Thi...