Isa reforms ‘to benefit consumers’

A series of reforms are being introduced for individual Savings-Accounts.aspx”>savings accounts (Isas).

The aim of the reforms is to make Isas more attractive by increasing certainty, making the regime simpler and more flexible and increasing the amount people can save in them.

From April 2008, every adult will have an annual Isa investment allowance of £7,200.

Up to £3,600 of that can be saved in a Savings-Accounts.aspx”>cash Isa with one provider.

The remainder can be invested in stocks and shares with either the same or another provider.

The changes will also mean that all personal equity plans will automatically become stocks and shares Isas.

The economic secretary, Kitty Ussher, who announced the changes, said: “The Isa has been successful in helping more people to save in a tax-efficient way.

“These reforms … will build on the success of Isas, making them even more attractive by allowing people to save more, and by being more flexible and simpler to use.”

The Investment Management Association is urging investors to take advantage of Isa reforms as soon as they come into force on April 6th 2008.

© Adfero Ltd

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