UK ministers consider cutting tax-free cash Isa allowance

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UK ministers are studying a 20,000 -pound ISA ministers, but they are discussing with London city numbers at the level in which they must be crowned, according to two people familiar with the situation.

At a meeting with senior bank executives including HSBC, Barclays and NatWest on Thursday, City Minister Emma Reynolds discussed the Isa Market Reform as part of a broader attempt to help convert more money to the shares listed in London.

People familiar with the situation told the Financial Times that the discussion touched on the reduction of tax-exempt cash allowances-a step that some city groups are severely pressured in recent months, and considered it a way to attract money to local stock and stock funds.

“It is still a decision [the Treasury] A person familiar with the meeting said:

A separate government figure said that the expectation is that the government will reduce the tax -exempt cash.

FT said at the weekend that the government is preparing to launch a market review, with the aim of encouraging savings to move from cash to investments and strengthen the sick stock market in London.

Under the current system, individuals can carry up to 20,000 pounds annually in a mixture of cash and investment without income tax and capital gains. There are four major ISA products, including the most popular cash, with 300 billion pounds of savings.

Any step to reduce the tax -exempt cash threshold that would indicate one of the largest savings markets in the United Kingdom since ISAS was created by Labor Party Adviser Gordon Brown in 1999.

Smack poured 4.2 billion pounds in ISAS cash in March, an increase of almost a third compared to the previous year, according to the investment site Hargreaves Lansdown.

The meeting with lenders – which also included the Lloyds Banking Group, NATORWIDE and TSB – is one of a series between the Treasury and parts of the city, from banks to industrial bodies, to fix the ISA market.

The Treasury set another meeting on Monday with the chief executives of investment sites in the field of retail, including Hargreaves Lansdown and Michael Summersgill from AJ Bell, according to people familiar with the plans.

One of the persons said that the discussion is expected to focus on criticism and investment, as well as investing in the origins of the United Kingdom.

In a statement to FT after the meeting, Chancellor Rachel Reeves said: “At the present time, there is a limit of 20,000 pounds for what you can put in cash or stocks, but we want to obtain this balance correctly.”

She added that she wanted to create “more than one culture in the UK to investment investment” in order to “gain better returns to savers and support ambition in developing the economy, and creating good jobs throughout the United Kingdom.”

Fidelity International is among the groups that called on the government to create a single ISA by people through which people can switch between cash and investments, with the annual amount that can be provided in cash at 4000 pounds.

However, others have paid the idea of ​​setting tax -exempt cash allowance, warning that change will not stimulate investment in shares in the United Kingdom.

The United Kingdom, a commercial body, said that it wanted to “keep the annual ISA optimized taxi allowance for 20,000 pounds, to avoid restricting consumer options.”

Additional reports by Akila Quinho in London