Aegon Asset Management, AJ Bell, Quilter and Saxo UK believe proposed plans for a British ISA “fall short” of what is needed to bolster the UK companies and the performance of the stockmarket, ahead of the consultation deadline today (6 June). They also warn that the proposed product could fall foul of Consumer Duty rules.
Calls to revamp, or in some cases scrap, the concept of a British ISA come a week after Labour also committed to implementing the new tax-free wrapper. Which, under current guidelines, will allow investors who have used their maximum £20,000 tax-free ISA allowance to invest up to a further £5,000 in UK equities.
According to the latest statistics from the UK Government, 7% of ISA users – equating to 1.6 million people – typically use up their maximum £20,000 allowance. Providing this percentage stays the same, and every user were to invest the maximum £5,000 allowances into UK companies, this…
