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Big City companies invite Rachel Reeves to reduce the return taxes for Gotovina Isas, the form of loved ones by millions of British, in an effort to increase financial services in the UK and the economy by directing money in stock.
Companies, including the insurance group Phoenix and London Stock Exchange Group, said the Chancellor that almost £ 300 billion held in cash, Isas, could make better offering for savers if they are invested in shares and shares, supporting the city’s missing stock market.
A senior banker said that question asked several finances managers at a recent meeting with Reeves and did not refuse the idea.
“The state should not give a tax relief that we all park our cash in cash,” said Andy Briggs, executive director of Phoenix, which manages the Life Brand Standard.
“I hope that is Rachel Reeves He will conclude that it makes sense to divert the Isa tax incentives to make them in accordance with the Government’s very welcome growth program, “added Briggs, who was at the meeting.
The abolition of Gotovina Isa would be the biggest earthquake of a savings market as the products first introduced the then chancellor Gordon Brown in 1999.
The money of Isa-i allows savings to earn £ 20,000 without taxes a year and are by far the most popular from Isas in the UK. Survey shows that many British prefer to retain the wealth in cash not investment On the stock market because they consider it safer.
One Treasury official lobbied on the abolition of Gotovina Isas by city companies said: “They also like the idea that it could provide this to grow weapons of asset management. They say there is a huge amount of capital that could work much more.”
People close to discussions said Reeves would hesitate to change the popular savings form, but the idea is not excluded.
“They are quite important products for many people, so the money change is a pretty big deal,” said another official.
The UK offers several different Isa -ov, including a cash product and another for shares and shares
However, the financial service industry has caused concern that cash Isas are money for housing that could make more in companies in London’s list, supporting the capital market in the UK. Banks make compensation by helping companies to sell shares to retail and institutional investors, while property managers have suffered from investors in recent years that have been drawing money from their capital in the UK.
Steven Fine, Executive Director of the Peli Hunt Investment Bank, said to FT that he was “consistently in contact” with the Treasury of ISA Reform, “Ideally limited or remove Gotovina, with a balance in shares and shares on the list in the list London. “
Another banker said that the government could limit the amount of money held within Isa, for example, up to £ 5,000, while the remaining, most of it could be held in stocks and shares.
The president of the UK property manager said that the industry calls on to Isa’s reform, noting that there should be “one Isa, encouraging people to be more assigned to British sections and shares.”
The treasury said: “We want to help people prepare for their future goals and build more financial resistance throughout the country. We keep all aspects of savings policy in examination. “
According to LSEG spokesman, the group was not at a meeting with Reeves, where the subject of Isas was discussed.
About 14 million British 22-meter owners of Isa holding only Gotovina Isas, according to the latest information on revenue and HM customs, from 2021 to 22, AJ Bell, a financial platform. Some 4.2 million investors held only shares, and Isa -e sections, and 3.6 mn had cash and shares and shares.
Of 726 billion.
