UK savers deposited a record £14 billion into cash ISAs in April 2024, the highest monthly figure since ISAs were introduced in 1999.
The surge is attributed to fears of potential changes to ISA rules under Chancellor Rachel Reeves.
Speculation arose that Ms. Reeves might reduce the tax-free allowance for cash ISAs. Although she confirmed the £20,000 annual ISA limit will remain, she hinted at curbing the cash portion
to encourage investment in stocks and shares.
Ms. Reeves aims to boost economic growth by shifting savings from cash ISAs to stocks and shares ISAs. City Minister Emma Reynolds criticised the current system, saying cash ISAs drain investment
from the London Stock Exchange. Banks and building societies oppose the changes, arguing cash ISAs are simple, accessible, and support lending.
Speculation will continue up to the Autumn Budget, as Ms. Reeves did not reveal her final plans for ISAs at her Mansion House speech on the 15th of July 2025, as many commentators thought she
would.
You may also like...
-
Saturday, January 4, 2025Read moreTax commitment finally set to change after 25 years
A 25-year UK tax commitment related to Income Tax is set to be axed from next month.
As the new tax year begins on 6 April 2025, rule...
-
Sunday, January 5, 2025Read more
Financial reporting: major changes for business sizes take effect
Significant changes affecting financial reporting have kicked in, meaning many businesses may be re-classified in
...
terms of their sizes. -
Saturday, January 4, 2025Read more
Hiring veterans: National Insurance relief extended for another year
Changes to National Insurance contributions for employers have dominated much of the tax news headlines since being announced at the Autumn Bud...
