- However, three in five (58%) think increasing the annual allowance beyond £20k would boost investing among clients
With savers rushing to meet this weekend’s tax year-end deadline, fresh data from research and insight agency Opinium reveals that 49% of Independent Financial Advisers (IFAs) believe a reduction or removal of the current ISA allowance would prompt clients to move more money into investments.
The annual ISA allowance currently stands at £20,000, but the Government is rumoured to be considering cuts to this, in a bid to shift savers from cash into stock market-based investments. Less than one in five (17%) IFAs think their clients would be less likely to move money into investments if the rumours came true.
What would encourage clients to invest in a Stocks and Shares ISA?
According to Opinium’s latest IFA Barometer, which tracks adviser views on the issues most affecting them and their clients, when asked what, if anything, would encourage their clients to begin investing, or invest more, in a Stocks and Shares ISA, 58% of IFAs think that increasing the annual ISA allowance beyond £20k would work, while 29% think removing the tax benefits of cash ISAs would do so.
A quarter (26%) think more access to advice or education is needed, 18% think stocks and shares ISAs need to be simplified, and 16% feel that removing stamp duty on UK shares would incentivise people to start or invest more.
Alexa Nightingale, Global Head of Financial Services research at Opinium, commented: “The mooted shake-up of cash ISAs was not announced in the recent Spring Statement, but the Chancellor is said to still be considering this move, in order to boost investing among UK savers. With almost half of IFAs agreeing that such a policy change could boost investing, all eyes will be on the Autumn Budget to see if this change comes to fruition.”
