Over 50s target equities with increased ISA allowances

Two thirds of over 50s plan to up their ISA equity investments, following the increase in limits today.

Respondents to an online poll from Barclays Stockbrokers indicate they would contribute up to the full increased £10,200 limit, introduced today for the over 50s.

While 66% plan to increase their allocation to stocks and shares - just 13% were planning to increase their cash investments

Confidence in potential returns from equities was balanced against caution amid continuing uncertainty however, with one in eight saying they will invest depending on the volatility of the markets; 9% believe their decision will depend on savings rates.

Barbara-Ann King, head of investments at Barclays Stockbrokers, says: "It is clear our ISA investors are keen to make the most of the increased ISA allowances and take full advantage of the tax free benefits.

"This means that our clients are able to move more meaningful amounts outside the tax net, and of course the ISA allowances only limit the contributions that can be made and not the potential returns with no capital gains or income tax payable on any growth within an ISA."

Chancellor Alistair Darling announced the ISA limits would be increased from a maximum of£7,200 to £10,200 in the Budget on 22 April.

However, while over 50s can benefit from the increase from today, the changes will only be rolled out to under 50s from the beginning of the next tax year.