The Individual Savings Account (ISA) is
a tax exempt savings account which allows
individuals to invest up to £7,000
per annum. Income from these accounts is
tax free.
Speaking at the Annual Conference of the
PEP and ISA Managers’ Association (PIMA)
in London recently, the Economic Secretary
to the Treasury, Ed Balls, announced the
conclusion of the Treasury’s review
of the ISA.
He said ‘I can announce that we will
make the ISA a permanent feature of the savings
landscape. This open-ended commitment to
the ISA will provide stability for savers
and certainty for the industry – all
of you who provide ISA products. It is a
crucial development in the Government’s
savings strategy and will give us a firm
platform on which to promote saving in the
future. In addition, the Pre-Budget Report
will confirm that the overall annual contribution
limit will continue to be at least £7,000
for each individual’.
He went on to announce that the intention
is to remove the mini/maxi account distinctions
which currently apply to ISAs. He also announced
that Personal Equity Plan schemes (PEP) are
to be brought within the ‘ISA wrapper’.
The detail to the changes is to be made in
the Pre-Budget Report.
Internet link:
PIMA press release
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