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May 3, 2001

30 May 2001


  • Extend £7000 ISA limit
  • Urgent review of tax credit abolition
  • Greater flexibility for savers and investors

The PEP and ISA Managers’ Association, whose members represent around 70 per cent of total ISA subscriptions, are calling on the UK’s three main political parties to be more bullish on the future of ISAs and the UK savings market.

Peter Shipp, Chief Executive, PIMA made the following statement:

"PIMA is disappointed with the lack of emphasis on the future of ISAs within all the major parties’ manifestos given the importance of savings and investment to the millions of baby boomer voters. Whilst we welcome the Labour Party’s previously announced commitment to an extension of the £7000 subscription limit until 2006, we believe the opportunity should be taken to commit to keep at least this limit in place for the life of the ISA.

"Each Party claims a commitment to saving, yet PIMA believes there are still further, significant opportunities to improve the attractiveness of ISAs and encourage low and basic rate taxpayers to save for the long term. These opportunities, which PIMA will continue to pursue with the Treasury and Inland Revenue, include greater flexibility on investing cash, including TESSA maturity money and other initiatives to encourage continued saving through PEPs & ISAs, following the removal of the tax credit in 2004.

"We are particularly concerned that no Party has shown any public thought to a replacement for the tax credit. Without the tax credit or suitable alternative, ISAs will become less attractive for millions of savers.

PIMA is committed to continuing its work to improve and simplify ISAs and believes there is much work still to be done."


For further information, please contact:
Peter Shipp, Chief Executive
01642 207 207
Stephanie Barrett / Alistair Kellie
Citigate Dewe Rogerson
020 7638 9571

About PIMA:

PIMA’s membership enables it to collate ideas and opinions from right across the PEP/ISA spectrum. It represents a wide range of interests including stockbrokers, unit trust managers, investment trust companies, banks, building societies and independent portfolio managers.

PIMA was formed in April 1991 as the PEP Managers’ Association (PEPMA). It grew into an active association of registered PEP Managers and third party administrators. To meet the introduction of ISAs and to expand services to member firms, the PEP and ISA Managers’ Association (PIMA) was set up in Autumn 1998. Currently PIMA has 136 members which account for over 70% of total ISA subscriptions.

More information is available at www.pima.co.uk