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ISA savers will be able to invest around £600 more in the next tax year after the Office for National Statistics announced that inflation hit 5.2 per cent in September 2011
Investors are currently able to place £10,680 in the tax efficient vehicles, however that number is set to rise to £11,280 from April 2012, of which £5,640 can be placed in a cash ISA.
The Isa limit was indexed to inflation for the first time in June last year, the figure is calculated to the nearest £120. The change linked ISAs to RPI but from 2012 the limit will rise in line with the less generous CPI.