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Pima wants lifetime account to come under stake suite

A lifetime savings account operating on Isa rules should be included in Sandler&#39s new suite of stakeholder products, according to the Pep & Isa Managers&#39 Association.

In its pre-Budget submission to the Treasury, Pima is calling on the Government to take a number of steps to reinforce the strength of Isas as a savings vehicle, including continuing the 10 per cent dividend tax credit indefinitely. It is due to expire in April 2004.

The call is echoed by the Investment Management Association in its submission, which reiterates its demand for scrapping the 0.5 per cent stamp duty on share transactions.

Both organisations are hoping that the Government reforms its individual pension account so that contributions are made to a portable wrapper rather than a full-blown pension scheme.

They also support allowing Isa investors to transfer their holdings from cash to equity based funds, a move which is currently prohibited.

Pima wants the proposed child trust fund, which is expected to gets funding in next year&#39s Budget, to be inc-luded in the Isa family and for commercial property funds to be eligible for Isa investments.

IMA taxation adviser Nathan Hall says: “We are hoping for movement on stamp duty. We are strongly behind the calls from the City to abolish the measure altogether but for the short term, we are proposing a number of changes which we believe will be revenue-neutral for the Government and so more acceptable to them.”

Pima director general Tony Vine-Lott says: “The biggest issue for us is the tax credit on Isas disappearing in 2004. At a time when the Government is trying to encourage people to save more, it seems a strange move to remove the tax incentives.”

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