The Government has announced a “radically new” Isa framework allowing savers to withdraw money from their Isa without it counting towards their annual tax-free entitlement.
Chancellor George Osborne said following the reforms on pension freedoms, “there is more to do to create a savings culture”.
He said allowing people to take money out of their Isa without the sum counting towards the annual limit would be one of four steps to reforms savings and investments in the UK.
Other steps include the previously flagged cash for annuities reforms, a new Help to Buy Isa, and the scrapping of the savings tax on the first £1,000 saved.
Osborne added: “I believe people should be trusted with their own money.”