US EditionIndustry Figures Urge Reeves to Go Further with Cash ISA Reforms
Chancellor Reeves aims to encourage UK stock market investments by halving the cash ISA limit while maintaining the overall ISA allowance at £20,000, impacting £300bn in deposits.
- Next month, Chancellor Rachel Reeves is reported to be considering cutting the cash ISA limit from 20000 to 10000 in the Autumn Budget, to boost investment.
- Facing a budget shortfall, the government aims to boost investment in UK stocks and shares to grow the economy while Reeves seeks to plug a £30billion financial hole.
- Industry groups warn more than 50 building societies and financial companies wrote earlier this year urging Reeves to keep the cash ISA limit at 20,000, with about 300bn deposited.
- Immediate consequences include savers likely acting to use the 20,000 allowance, and a cash ISA raid could boost the 6 billion the Treasury collects, reports say.
- Historic data show a historical saver example holding about £34,000 in cash but £83,000 in stocks-and-shares ISAs, while similar reform plans faced backlash, highlighting political risks for cash savers.
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The Independent (US)Housing targets could be derailed if cash Isa limit is cut – building society
Reports suggest that the Treasury could be considering cutting the annual cash Isa limit to £10,000. The Government could risk derailing its own housing targets if the cash Isa limit is slashed, a building society has warned. The Financial Times reported that Chancellor Rachel Reeves is looking to use the Budget to revive plans for an overhaul of tax-free Isas as the Government seeks to support an investment culture. A person close to the proces…
Industry figures urge Reeves to go further with cash ISA reforms
Financial industry figures have urged Rachel Reeves to go further on reforming the cash ISA, following speculation the Chancellor is looking to overhaul the system in the looming Autumn Budget. Reeves is understood to be reviving a plan to cut the tax-free limit on cash ISAs, in a bid to get ...
Cash ISA limit could be reduced to £10k - this is what you should do
The cash ISA limit could be halved to £10,000 in the upcoming Budget as Chancellor Rachel Reeves looks to revive her plans to boost wider investment in the UK stock market. Reports previously suggested the cash ISA limit could be reduced to as little as £4,000 or even be scrapped altogether, but received backlash from building societies and savers alike. Now, the Financial Times reports that Reeves is looking to cut the limit from its current le…
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