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The government will introduce a new Individual Savings Account (ISA) with a £5,000 allowance. This is in addition to the £20,000 that can be put into ISAs currently available. Investing into an ISA means individuals do not pay tax on interest on cash in an ISA or income or capital gains from investments in an ISA.
Individuals considering putting money into ISAs.
The government will consult on the details in due course.
The introduction of a UK ISA will be a welcome addition for savers looking to invest in UK focused assets. The government is looking to introduce this new ISA account ‘to channel more investment into UK equities’.