IMA calls for further annual increase in Isas for pre-Budget report
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The Investment Management Association has called for further increases to the Isa limit as part of its pre-Budget submission to the Chancellor of the Exchequer.
The trade body wants the Isa limit to be kept in line with inflation in a bid to hammer home the benefits of long-term savings.
IMA chief executive Richard Saunders says: “It’s important that a clear message is delivered about the benefits of long term saving. With this in mind we are calling for the Government to help savers and pensioners by increasing the ISA limit annually at least in line with inflation and to abolish the requirement for people to turn their pension savings into an annuity by the age of 75.”
The Chancellor announced an increase in the annual Isa limit from £7,200 to £10,200 in the 2009 Budget in April. The move was met with criticism after it was also revealed that the increased Isa limits will only apply to those aged over-50 this year, with everyone becoming eligible in 2010.
Other reforms called for by the trade body include the abolition of stamp taxes on UK equities, the fund-specific stamp duty reserve tax and the non-discriminatory treatment of offshore investments.
Other reforms the IMA has called for to improve the competitiveness of the UK fund management industry are the introduction of a UK-tax transparent contractual fund that will encourage cross-border institutional investment and provisions to allow unauthorised UK funds and offshore funds to convert to a property authorised investment fund (PAIF) without additional administrative and legal costs.
Saunders says: “Major progress has been made in a number of areas, but the UK cannot rest on its laurels. A further number of key steps are now required to ensure that the UK is seen as a serious domicile for fund management. If we are successful in this endeavour, then the Government stands to gain through an increase in tax revenue.”
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