Chancellor Jeremy Hunt announced a new “British ISA” to give investors a £5,000 extra tax-free allowance to “encourage more people to invest in UK assets”.
Mr Hunt also said he intends to reform the ISA system to encourage more people to invest in UK assets.
He said: “After a consultation on its implementation, I will introduce a brand new British ISA which will allow an additional £5,000 annual investment for investments in UK equity with all the tax advantages of other ISAs.
“This will be on top of the existing ISA allowances and ensure that British savers can benefit from the growth of the most promising UK businesses as well as supporting them with the capital to help them expand.”
Money Saving Expert founder Martin Lewis updated his 2.7 million X followers: “There will be a new British ISA, which allows an additional £5,000 investment on top of the £20,000 allowance – to focus only on investing in UK assets.
One X user replied to Mr Lewis’s tweet: “Cool, but how many people have £20k to invest, nevermind £25k…” (sic)
Mr Lewis responded: “Actually a surprisingly large number.”
Mr Lewis followed up: “British Saving Bond to come from NS&I new 3 year fix – the key is what is the rate – it will need to be over 5% to be worth it (unless allowing very large savings, over £85k which is when NS&I being state owned has an extra safety boon)” (sic)
Cash ISAs are a popular savings option, as these accounts enable people’s money to grow without having to pay tax on the interest above the Personal Savings Allowance (PSA).
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