Smaller companies trade association, the Quoted Companies Alliance, is lobbying the Chancellor for the introduction of a new long-term savings vehicle catering for lum-sum investors.
The QCA, which represents Britain's smaller quo-ted companies, has written to Chancellor Gordon Brown outlining proposals for a long-term individual shareholder account.
The Lisa would allow individuals to invest up to £70,000 – the equivalent total of 10 years of the current Isa allowance – tax-free at any time .over a 10-year period and would provide more flexibility for large lump-sum investors.
The QCA believes that if investors are given the chance to invest bigger sums, they are more likely to consider placing part of their portfolio into smaller companies.
It considers the current £7,000 Isa limit discourages investors from building a diverse portfolio.
QCA tax specialist Mich-ael Jacobs says: “The Government needs to recognise that most people only sporadically have the capacity to invest and that the current tax-free savings packages do not cater for large one-off lump sums.”
Chief executive John Pierce says: “A £70,000 allowance would make it possible for the first time for personal savers to construct a meaningful portfolio. This would be good for equity investment generally and we believe, by encouraging the spread of investments across a range of stocks, would also be good for smaller quoted companies, which are often too neglected by the big pooled funds.”