ISA sales soar as the over-50s use allowances

SALES of ISAs soared last month, boosted by the over-50s taking up their increased &pound;10,200 tax-free allowance.<br /><br />Figures from the Investment Managers Association revealed gross ISA sales hit &pound;965m in October. This was the highest recorded figure in any month since ISAs were launched in April 1999.<br /><br />Net new investments in equity ISAs reached &pound;301.1m, almost double September&rsquo;s total of &pound;162.3m. It was also the highest month since June 2000 for ISA sales outside the traditional selling season of March to April.<br /><br />Property became the best-selling retail sector accounting for &pound;367.6m of net retail sales &ndash; the highest since May 2007.<br /><br />This was in contrast to last November and December when property was the lowest selling sector.<br /><br />Richard Saunders, Chief Executive of the IMA, said: &ldquo;October was the first month in which the over-50s could use their ISA allowance &ndash; and it proved to be the highest ever October for gross ISA sales. ISA sales are clearly heading for their best year since 2002.&rdquo;<br /><br />The most popular fund choice for ISA investors was the IMA Cautious Managed Sector.