UK's Healey to reverse cuts to cash ISA allowances, FT reports
The reversal follows backlash from savers and banks, while HMRC analysis found the cut would have had little economic benefit.
- On Wednesday, Chancellor John Healey is expected to scrap plans to slash the annual cash ISA allowance from £20,000 to £12,000 in his first Budget this afternoon.
- Former Chancellor Rachel Reeves introduced the reduction last year to encourage investment in Britain, but the policy faced widespread criticism for its complexity and potential to discourage savers.
- ISAs remain Britain's most popular savings product, with HMRC figures showing around £135.7 billion was paid into adult ISAs in the 2024/25 tax year, largely driven by cash subscription growth.
- While savers welcome the U-turn, some Investment figures branded the decision 'deeply misguided,' arguing that protecting tax incentives for cash discourages long-term investment.
- Instead of imposing restrictive allowance cuts, Healey reportedly intends to educate savers on the benefits of Stocks to foster wealth-building and long-term investment.
52 Articles
52 Articles
John Healey set to U-turn on £8,000 Cash ISA allowance cut in boost for savers
Savers could receive a major Budget boost amid reports that Chancellor John Healey will abandon plans to cut the annual Cash ISA allowance by £8,000.If confirmed, people will still be able to save up to £20,000 a year in a Cash ISA without paying tax on the interest.Chancellor John Healey is expected to abandon plans to cut the annual Cash ISA allowance from £20,000 to £12,000, according to the Financial Times.The reduction, announced by former …
Healey poised to reverse Isa savings cut in Budget U-turn - London Business News
John Healey is reportedly preparing to abandon a controversial plan to slash the annual tax-free cash Isa allowance, in a Budget U-turn that would deliver relief to millions of British… The post Healey poised to reverse Isa savings cut in Budget U-turn appeared first on London Business News
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