Treasury sets out new Isa protection rules
The Treasury is to change its Isa rules to allow investors who lose their savings a result of the collapse of a financial firm to reinvest their money without affecting their annual allowance.
Under current rules, any sum lost due to the collapse of a provider would fall under the annual allowance, currently £10,680, although the Government has made allowances for several high-profile failures in the past.
The BBC reports that Treasury financial secretary Mark Hoban has outlined, in a statement to MPs, plans to allow investors that have lost money to reinvest the equivalent amount in the same year without affecting their annual allowance.
Hoban says: “[The changes] will enable investors whose Isas are affected by the failure or default of a financial firm to continue to benefit from tax-advantaged savings.”
He added: “They also demonstrate the Government’s commitment to ensure that the Isa remains a secure, accessible and tax-advantaged saving product.”