The ISA allowance for the 2013/14 tax year will be £11,520.
The rise will take effect from 6 April 2013 following the latest Consumer Prices Index (CPI) figures released for September 2012.
Previously the Government has announced that the annual ISA allowance would increase each year by the same rate as the level of CPI for the September prior to the start of the new tax year. The increase in the ISA allowance would be rounded to the nearest £120 for ease of calculating monthly contributions.
With CPI confirmed to be 2.2% for the 12 months to September 2012 that would mean the new ISA allowance for 2013/14 would be set at £11,520. The Cash ISA allowance is therefore £5,760.