PRE BUDGET SUBMISSION
The PEP and ISA Managers’ Association today handed its pre-budget submission to the chancellor. Amongst its key recommendations, PIMA seeks the retention of the tax credit for Pep and Isa dividends, (currently set to end in April 2004), a ‘family’ of ISA savings vehicles including the Child Trust Fund and an ISA-based Individual Pension Account.
Tony Vine-Lott, PIMA Director General said: "The ISA is a ‘tried and trusted’ formula. It is an extremely flexible savings wrapper and our pre-budget submission contains a number of ideas to expand its use within the UK savings industry. PIMA believes that the well-understood ISA fits with the post-Sandler drive for simplification. We are very excited about this year’s submission and very much hope that the Chancellor will listen to the views of our membership."
The main list of recommendations is as follows:
PIMA firmly believe that the PEP and ISA 10% dividend tax-credit should be retained after April 2004
PIMA proposes that the Individual Pension Account (IPA) is restructured using the ISA rules as a basis
PIMA recommends that ‘switching’ between ISA components should be available to investors
PIMA proposes that the Child Trust Fund (CTF) be a part of an ISA family
PIMA recommends that a lifetime product based on ISA rules should be an integral part of the planned ‘Sandler Suite’
PIMA propose that Commercial Property Funds should be eligible as qualifying investments for ISAs