GBI Magazine’s question series returns, as we aim to find out our readers thoughts and views on some of the topics dominating the financial services and investments sector in 2024. Our most recent focused once again on a diverse range of influential topics being widely discussed, from tax incentives for sustainable investments, which tax-saving investment will give the best mix of growth and security over the next 5 years, should the government raise the yearly limits on ISAs and pensions, and which type of tax-efficient investment do clients find the most confusing. Readers have shared their views, and the results have since been listed below:
1) Do you think the government should offer more tax incentives for sustainable-friendly investments like green ISAs, VCTs, and SEIS?
Question one highlighted the ever growing discussion regarding sustainable-friendly investments, asking readers if they feel that the government should be offering more options when it comes to tax incentives for investments such as green ISAs, VCT’s and SEIS. It is clear that sustainability is becoming ever more prominent, with pressure growing on corporations, investors and the government alike to consider more environmentally beneficial options moving forward. This element is also backed up with the results of the poll, with the vast majority of 81.8% of readers voting that they absolutely think that the government should be offering more tax incentives for sustainable-friendly investments. A smaller percentage of 18.2% voted that they believe that the tax incentives are currently fine as they are, however, it is clear that there is growing pressure for the new government to offer more incentives for investment options such as Green ISAs in the future.
2) Which tax-saving investment do you think will give the best mix of growth and security over the next 5 years?
The second question aimed to determine which tax-saving investment do readers think will give the best mix of growth and security over the next 5 years, the results were interesting. Both ISAs and EIS (Enterprise Investment Schemes) received the highest results at 63.6% of votes, concluding that both investment types are viewed in highly positive light overall, and could offer the best combination of both growth and security as we look to the next few years. VCT’s (Venture Capital Trusts) came in at second place for growth and security in the future, with pensions at 9.1%. It is visible from the results that pension investments are an area where there is a much less confident perception of possible growth and security in the next 5 years.
3) With inflation still a worry, should the government raise the yearly limits on ISAs and pensions to help protect our savings?
The third question in our series focused on whether or not viewers believe that it would be beneficial for the government to raise the yearly limits on ISAs and pensions in order to protect savings, a stark majority of 81.8% of readers do in fact think that yearly limits should be raised in order to better protect savings. 18.8% believe that the current limits on ISAs are fine as they are, and do not need a raise to feel more secure.
4) With so many tax-efficient investments out there, which one confuses clients the most?
Our fourth and final question in this weeks series aimed to determine a better idea of which tax-efficient investment type confuses clients the most, with a range of tax-efficient investment options to choose from, it is no mystery that it can sometimes be a slightly challenging choice to determine which type of investment will be the most beneficial for clients. The results of the poll determined that, alike question 2, pensions are deemed to be the least popular with 72.7% voting that they find this form of tax-efficient investment to be the most confusing with clients. Both VCT’s and EIS/SEIS claimed the second spot, with 18.2% and ISAs favourably being perceived as the least confusing investment type for clients. Our poll this week highlighted a prominent pattern that pension investments are currently perceived in a lesser positive light, due to factors such as confusion, wanting the best possible result for your money, lack of understanding surrounding the various pension investment options, and also elements such as lack of trust in government policies.
As always, we would like to say a huge thank you to each and every one of our readers and followers who got involved with our most recent question series poll, we highly value being able to gain insight into our readers views and thoughts on many of the factors influencing our industry, so be sure to keep an eye out on our GBI Magazine, and IFA Magazine Twitter accounts next week for our next questions of focus!
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