PIMA welcome ISA changes
The Government’s continued commitment to the UK’s savers and the providers is much appreciated. The Chancellor’s confirmation of crucial changes to the ISA regime will simplify the Government’s flagship savings regime while enhancing the attractiveness of saving.
Key reforms suggested by PIMA and now due to be implemented in the 2007 Finance Act are:
• Extension of the ISA regime beyond 2010; making the scheme permanent.
• Elimination of the ‘mini/maxi’ distinction
• Freedom to transfer cash into equities without respect to annual subscription limits
• Conversion of PEPs into the ISA wrapper
• An overall investment limit of AT LEAST £7,000
• The allowance of transfer of mature CTFs into ISAs
Director General Tony Vine-Lott said,
[i]‘The confirmation by the Government that it will carry forward these important reforms to ISAs is welcome news for British savers. We particularly welcome the ability for savers to convert their cash into equity investments as they take a long-term view for their savings and investments as this will make the ISA Scheme even more attractive for retirement savings. We look forward to working with the Chancellor and the Treasury in implementing these reforms in the 2007 Finance Act.’[/i]
For more information:
Iain Anderson, Cicero Consulting
020 7665 9532
077 8550 7045
Jacob Coy
020 7665 9535
079 0039 2531