Elissa Bayer, Senior Investment Director, at Investec Wealth & Investment says: “It’s encouraging to see that savers can benefit from a new breed of tax-free ISAs with an allowance of £15,000 and the end to the absurd rule that only allows savers to transfer cash ISAs into stocks and shares and not the other way round.
This will boost the savings industry and allow basic rate taxpayers to benefit from greater flexibility.
The radical change to the pension system, which means that around half a million people won’t have to buy an annuity, will benefit the economy in the long run as more and more people drawdown money from their pension and spend.
“The Government’s growth and fiscal reduction figures are attractive but there is still a long way to go – 2018 is a long way off. The idea that £4bn will be raised from people or entities that have illegally avoided paying tax and that the HMRC have been given the authority to get the money direct from people’s bank accounts, will be ugly and certainly not straightforward.
“As ever the question remains, where will the Government find the money to follow through with these ambitious plans?”
Sylvia Waycot, Editor at Moneyfacts.co.uk, comments:
“Chancellor George Osborne’s announcement that ISAs are to be inter-transferable is terrific. The inflexibility of not being able to move from stocks and shares to cash or being able to put the entire allowance into cash ISAs has been a bug bare for industry and consumers alike. Frustration has long existed at the unfairness of a system that penalises those who are risk adverse and prefer the safe haven of a savings account.
“This latest announcement means that savers are able to invest their total ISA allowance in a form of savings that makes them feel comfortable. All we need to add icing to the cake is for ISA rates to truly reflect savers’ ambitions. Sadly that is less likely to happen.”