The Government has announced that as from 6 April 2016, investors will be permitted to withdraw and reinvest money held in both cash ISAs and stocks and shares ISAs.
The Chancellor has also issued a ‘green paper’ discussion document to gain views on the feasibility of bringing the system of tax reliefs on pensions into line with that for ISAs. That is to say, removing tax relief on pension contributions but making pension payments tax-free.
This would save the Government many billions of pounds in tax relief but could undermine the incentive to save and would cause problems for many occupational pension schemes.
If you haven’t yet invested within an ISA this tax year, or would welcome advice on your existing ISAs – feel free to contact us.