- British Isa plans part of the push to support UK stocks
- The new allowance will be on top of the existing £20,000 allowance
Investors will have a dedicated tax-free individual savings account (Isa) allowance for UK shares, under plans announced in today’s Spring Budget by chancellor Jeremy Hunt. The measure is meant to entice investors to allocate more to UK stocks.
The UK Isa will offer a tax-free annual Isa allowance of £5,000 to invest in UK equities, on top of the existing annual £20,000 allowance. This will be introduced after a consultation. The same tax advantages will apply, meaning that assets within the Isa will be sheltered from capital gains and dividend taxes.
It is unclear as to what would qualify for the new Isa but consultation documents suggested it could include investment trusts and open-ended funds that predominantly invest in British companies,…
