PIMA CALLS ON CHANCELLOR GORDON BROWN TO RESTORE ISA INCENTIVES TO PROMOTE INCREASED SAVINGS
The PEP and ISA Managers’ Association today issued its Pre-Budget Submission to the Chancellor calling for the ISA tax credit to be restored and greater flexibility within the ISA structure.
Key points from the PIMA submission:
[list][*]PIMA remains committed to restoring the 10% tax credit dividend on stocks and shares ISAs that was removed in April 2004.
[*]PIMA recommends that the promotional materials around the Child Trust Fund (CTF) promote equity-based investments.
[*]PIMA believes that consumers should have the flexibility to switch between ISA components.
[*]PIMA recommends that overall ISA subscription limits should be raised in line with earnings.
[*]PIMA advocates the broadening of the provider pool for personal pensions within the Inland Revenue pension rules simplification project, and 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.[/list]
Tony Vine-Lott, Director General of PIMA, said:[i] “PIMA wants to see a significant boost to savings in the coming Budget. Our submission is designed to maintain and restore the attractiveness of the Government’s most successful savings vehicle as well as extending the benefits of ISAs to more consumers.”[/i]