ISAs maintain popularity despite economic pressure
TISA responds to latest HMRC statistics
Provisional statistics released by HMRC have revealed that £53,860m was subscribed to ISAs in the 2011/12 tax year – a slight increase on the previous year’s total of £53,772m – and the highest annual total since the introduction of ISAs in 1999.
Subscriptions into Stocks and Shares ISAs grew from £15,495m a year (2010/11) to £15,810m (2011/12). However this was offset by a small reduction in the total amounts paid into Cash ISAs from £38,277m (2010/11) to £38,050m (2011/12).
Commenting on these figures, TISA Director General Tony Vine-Lott said:
“It’s a positive sign that overall contribution levels into ISAs have remained steady despite the economic squeeze being felt by many UK taxpayers.
“This is undoubtedly leading some people to opt to pay down their debts; as a result their capacity to save into Cash ISAs, which have become a haven for short-term saving, is being put under pressure. However, the increase in subscriptions into Stocks & Shares ISAs is indicative of a growing desire to invest over the longer term, for example to supplement income in retirement.
“ISAs are maintaining their popularity, due in large part to the fact that as well as being tax-efficient they are also easy to understand and access. Together with Junior ISAs, auto-enrolment in pensions and the move to create a range of ‘simple financial products’ we will soon have a savings ‘suite’ that will meet the needs of a diverse range of financial circumstances. This is essential if we are to increase the overall level of savings.”
Further information on ISAs is available in the statistics section of the TISA website: www.tisa.uk.com
For further information, please contact:Tony Vine-Lott, Director General, TISA – Tel: 01372 374728, Mobile: 07790 006108Email: tony.vine-lott@tisa.uk.com
Carol Knight, Director of Member Services, TISA – Tel: 01642 666989, Mobile: 07967 317003 Email: carol.knight@tisa.uk.com
Issued on behalf of TISA by Cauldron Consulting, contact Steve Radford – Tel: 020 3178 7238, Mobile: 07889 903786 Email: steve.radford@cauldron-consulting.com
Notes for Editors
The Tax Incentivised Savings Association (TISA)TISA is the premier industry funded body in the UK retail savings and investment industry. By engaging with member firms, government, political parties, regulators and consumer groups TISA’s ultimate goal is always to further consumers’ best interests. It seeks to improve the range, features and quality of savings and investment schemes available whilst encouraging more people to save for their financial security and peace of mind.
Uniquely, TISA is able to articulate the opinions of the whole savings and investments marketplace through its membership comprising over 120 member firms involved in the supply or distribution of products. TISA’s remit extends across the broad spectrum of savings vehicles & services and centralised investment propositions.www.tisa.uk.com