AJ Bell urged the chancellor to slash any plans to create a ‘Great British ISA’, highlighting the restriction of investment choice as a potential issue for investors.
The platform argued that, after snubbing any changes in his Autumn Statement, Hunt should consider a «radical, long-term simplification» of ISAs in his upcoming Spring Budget on 6 March.
According to AJ Bell, some of the reforms should include the supercharging of the Lifetime ISA by reducing the early withdrawal charge from 25% to 20%, as well as increasing the minimum property price, in light of rising house prices, especially in London.
The ISA allowance should also be increased from the current £20,000, AJ Bell argued, suggesting the introduction of a mechanism linking the threshold to inflation.
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On the inheritance tax front, which has been highly speculated as a main area of reform in Hunt's upcoming Budget, the platform urged the chancellor to make ISA funds exempt from IHT.
However, while the platform provider called for greater reform, it also urged the chancellor to slash any plans to create a ‘Great British ISA', highlighting the restriction of investment choice as a potential issue for investors.
Tom Selby, director of public policy at AJ Bell, said there is no evidence the speculated GB ISA — which is considered to encourage investments in UK companies or in funds that invest in UK companies — will actually boost investments in UK equities.
He noted FTSE 100 companies are «generally international businesses», arguing that any investment resulting from a GB ISA «would not automatically lead to higher growth in the UK».
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«It is not
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