UK ISA Investment To Increase From July 1

By Editorial 20 May, 2014

British bank Halifax expects that changes to tax-free savings account rules in the UK will result in a larger allocation to such Individual Savings Accounts (ISAs) from July 1, 2014, when the deposit limit rises to GBP15,000.

Almost one third of investors are planning to invest more heavily in stocks & shares ISAs when the ISA allowance rises on July 1, 2014, Halifax found. However, only about ten percent are likely to move their money between the cash and stocks and shares elements during the year, despite a relaxation of rules concerning transfers.

In his latest Budget, Chancellor of the Exchequer George Osborne announced the total ISA allowance would be boosted to GBP15,000 (USD25,217) from July 1, and that investors will be allowed to choose whether they place their money fully in cash, stocks and shares, or a split between both.

Halifax's research found that 20.9 percent of investors are planning to invest the maximum amount possible in a stocks and shares ISA. However, it found that more than a fifth (22.7 percent) of investors say they won't be affected as they do not have any extra money to invest in ISAs.

Damian Stansfield, managing director of Halifax Share Dealing, said: "It has been almost two months since the changes to simplify the current ISA system and give investors more flexibility were announced. Since then investors have been looking at the potential impact of this, and the latest Market Tracker indicates many investors are already planning to increase the amount of money they invest in stocks & shares ISAs."

"However, while investors will soon be able to move their money between stocks and shares and cash ISAs, the Tracker shows the numbers planning to use this facility are low. As with all investment related decisions, investors should always do their own research before making any decisions that will impact on their returns."

Tags: Investment | Banking | United Kingdom | Expats |


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