In response to recent reports that the government has scrapped plans to create a ‘British ISA’, Shaun Moore, tax and financial planning expert at Quilter has been telling us what he thinks of this idea saying:
“Labour’s reported scrapping of plans to create a British ISA is a sensible move. The ISA is a simple idea, a tax efficient place to grow your wealth, however, with various additions over the years it has now become a confusing area of personal finance. If the British ISA did see the light of day, it would have further muddied the water.
“The British ISA was rife with issues and the proposals ran the risk of consumer confusion or poor outcomes. For example, limiting the ability to transfer out of a British ISA to a different ISA may not be fully understood at the time of opening. Furthermore, the investment universe of a British ISA would be naturally limited.
“The reality is, the UK has a cash savings problem and too much money is sat in low yielding cash ISAs, doing very little to help them or the economy. Finding ways to get that money invested for the long-term would be far more beneficial to the UK as a whole without the need for the creation of an extra allowance. The more people we get investing, both in the UK and more generally, the more the economy will naturally come to benefit.”
ENDS
