Under the current rules, any funds lost if the provider folds would still count towards the £10,680 annual limit, of which £5,340 can be in cash. However, under the proposed changes, the amount able to be invested will increase to £11,280 from April next year and savers will be able to reinstate up to the balance of their account in a new ISA.
In a statement to MPs, Mark Hoban, Financial Secretary to the Treasury, said that the plans included allowing savers who have lost their cash ISA to save the equivalent amount, in the same year, in a new account with another provider.
They would also allow an investor the opportunity of reinvesting any compensation paid out if a stocks and shares ISA is affected by a financial firm's collapse and would permit investors with ISAs directly affected by the collapse of Lehman Brothers to reinstate the same level of investment, irrespective of whether compensation has been paid.
In the statement Mr Hoban said that the changes “will enable investors whose ISAs are affected by the failure or default of a financial firm to continue to benefit from tax-advantaged savings,"
He added that they "also demonstrate the government's commitment to ensure that the ISA remains a secure, accessible and tax-advantaged saving product,” he added.
In related news, Halifax recently launched a Junior Stocks and Shares ISA, which tracks the performance of the FTSE 100 Index and allows parents to save for their children’s future after the Government’s decision to extend tax-efficient savings for children.
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
[ add comment ] ( 8 views ) | permalink |
( 3 / 497 )
Random Entry
