Investment bosses call for ‘radical’ Isa overhaul to boost UK equities
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The UK’s largest investment sites have urged the government to overhaul the British savings market in an attempt to channel money into domestic equities, which have suffered from record investor outflows.
AJ Bell told the Financial Times it had sent a policy paper to the Labour government asking it to consider “radical” simplification of the Individual Savings Account market, as well as tax breaks for UK stocks, to encourage retail investors to buy domestic equities.
Michael Summersgill, chief executive of AJ Bell, said in the paper that the
Summersgill said an “even more radical” idea would be to extend inheritance tax exemption beyond investments in small companies listed on the alternative market to all UK shares and domestic equity funds.
“If Labour can grasp the nettle by radically simplifying Isas, it can establish a foundation upon which the future prosperity and ultimately UK businesses can be built,” Summersgill said.
The Treasury said: “There’s no time to waste to fix the foundations of the economy, which is why we’ve taken immediate action to boost investment and economic growth. We will also take action to reinvigorate our capital markets to support this.”
