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PIMA BUDGET SUBMISSION CALLS ON CHANCELLOR BROWN TO BOOST SAVINGS

October 6, 2003

The PEP and ISA Managers’ Association today issued its Pre-Budget Submission to the Chancellor calling for the ISA tax credit to be maintained and the Child Trust Fund to be part of the ISA family as a major boost to savings.

Key points from the PIMA submission:

* PIMA remains committed to maintaining the 10% tax credit dividend on stocks and shares ISAs from April 2004 and urges the Government to do so to continue to promote saving.

*PIMA recommends that the existing ISA structure, regulations and authorisation are used for the Child Trust Fund and that it should encourage equity based investment (CTF).

* PIMA proposes that the Sandler Suite of products should include the use of CAT marked cash ISA’s for short term and CAT marked equity ISA’s for medium term investment groupings and that the stock and shares and insurance ISAs should be merged.

* PIMA advocates the broadening of the provider pool for personal pensions within the Inland Revenue pension rules simplification project to allow a mixture of investments in a similar way to ISAs.

*PIMA recommends that the Government’s commitment to ISAs should extend beyond the current date of 2010.

* PIMA believes that a review is needed of mini and maxi ISAs as a result of planned changes to the polarisation rules.

* Overall ISA subscription limits should be raised in line with earnings

Tony Vine-Lott, Director General of PIMA, said: “PIMA wants to see a significant boost to savings in the coming Budget. Our package of measures is designed to safeguard the attractiveness of the Government’s most successful savings vehicle as well as extending the benefits of ISAs to many more consumers.”

For more information and comment:

Tony Vine-Lott – PIMA 01372 374728 07790 006108
Iain Anderson/Sally Pagonakis – Cicero Consulting 020 7665 9532/3