Isa reforms to be established by April 2008
02/02/2007
The UK government is looking to make personal saving simpler and more flexible, it has been announced.
Government reforms that aim to simplify the current individual savings account (Isa) structure will be introduced in April 2008, according to the Treasury.
Announced alongside the Pre-Budget Report 2006, the changes to the savings account system include the extension of Isas indefinitely, so that it is guaranteed that the overall annual investment will remain at least £7,000.
Additionally, the mini and maxi distinction within Isas will be removed – a move made to simplify the regime and make it more understandable, the Treasury states.
Ed Balls, economic secretary to the Treasury, remarked: "Isas are a vital part of our approach to promoting saving.
"Over £220 billion has been invested in Isas since 1999 and over 17 million people in Britain now have an Isa, more than double the number that held Tessas or Peps."
He added that the reforms planned will "encourage every individual" to start saving their money.
The Pep and Isa Managers Association has welcomed the move with Tony Vine-Lott, director-general of the firm, saying: "We look forward to continued work with the government on the details of the transition".
Government reforms that aim to simplify the current individual savings account (Isa) structure will be introduced in April 2008, according to the Treasury.
Announced alongside the Pre-Budget Report 2006, the changes to the savings account system include the extension of Isas indefinitely, so that it is guaranteed that the overall annual investment will remain at least £7,000.
Additionally, the mini and maxi distinction within Isas will be removed – a move made to simplify the regime and make it more understandable, the Treasury states.
Ed Balls, economic secretary to the Treasury, remarked: "Isas are a vital part of our approach to promoting saving.
"Over £220 billion has been invested in Isas since 1999 and over 17 million people in Britain now have an Isa, more than double the number that held Tessas or Peps."
He added that the reforms planned will "encourage every individual" to start saving their money.
The Pep and Isa Managers Association has welcomed the move with Tony Vine-Lott, director-general of the firm, saying: "We look forward to continued work with the government on the details of the transition".
