The Government is set to scrap the Conservative-proposed British ISA after the Labour Party previously backed the scheme during its election campaign trail.
A report in the Financial Times quoted a Government official stating that it doesn’t wish to add any further complexity to the ISA landscape by going ahead with the British ISA.
However, during the Labour campaign trail, reports suggested the party had no plans to drop the UK ISA, also known as the British ISA, which was first proposed by the Conservatives in the March 2024 Budget.
As part of the proposals to encourage more investment in UK assets, the British ISA was expected to give people an additional £5,000 annual allowance (on top of the current £20,000 ISA allowance) for investment in UK equities.
UK companies were defined as ordinary shares…
