Figures reveal strongest ISA season in nine years

11 May 2011

The 2010/11 ISA season was the strongest in nine years, with net sales of almost £1 billion, latest figures reveal.

Investments in stocks and shares ISAs were particularly high as people rushed to use up their tax-free annual ISA allowance before the end of the tax year.

According to the Investment Management Association (IMA), a total of £956 million was paid into UK-based unit trusts and Oeics (open-ended investment companies) between 1 March and 5 April - a period known as the ISA season.

Despite the last-minute rush, total ISA sales for 2010/2011 were slightly down on the previous year at £3.68 billion, compared with £3.99 billion.

Commenting, Jane Lowe, director of markets at the IMA, said: 'The last two tax years have together seen a big jump in ISA inflows to more than £7.5 billion.

'This coincides with two increases to the annual allowance in October 2009 and April 2010 and compares starkly to Isa outflows of over £5 billion over the preceding five years.'

On 6 April 2011 the annual ISA subscription limit for 2011/12 increased from £10,200 to £10,680, up to £5,340 of which can be invested in a cash-only ISA.