PIMA anticipates Government action on ISA limits, welcomes clause on gross interest payments
The PEP and ISA Managers Association (PIMA) welcomes the reintroduction of the full 2005 Finance Bill.
PEP and ISA Managers’ across the UK await the secondary legislation which will enable current ISA subscription limits to stay at current levels. After outspoken lobbying by PIMA and its members, the Chancellor recently announced that ISA limits would be maintained.
PIMA Director-General Tony Vine-Lott said,
[i]‘We look forward to the Government fulfilling its Budget commitment to extend ISA subscription limits through the 2009/2010 tax year by laying the necessary legislation. In doing so, this Government will give investors and providers confidence in tax incentivised products for the long term.’[/i]
Additionally, PIMA welcomes clause 22 of the Finance Bill released today. This removes the burden currently placed upon authorised investment funds managers to certify that accounts are valid before paying gross to the ISA manager. Currently, if a PEP/ISA is paid to the manager and the account is later found to be void, the manager is responsible for the tax liability.
If the Finance Bill is passed, when an account is found to be void, PEP/ISA/CTF Managers will have no responsibility for that tax. Instead, they will simply remove the account from the tax-efficient wrapper and inform the account holder of their tax responsibility.
This applies only to PEP/ISA/CTF account holders.
PIMA Director-General Tony Vine-Lott said,
[i]‘We welcome these changes. As managers work to provide the best returns for the millions of tax incentivised PEP/ISA/CTF account-holders, any lessening of the regulatory burden upon them ultimately benefits the consumer.’ [/i]
Tony Vine-Lott, PIMA
07790 006108
Iain Anderson or Jacob Coy, Cicero Consulting
020 7665 9535
079 0636 1970