Mar 20 2008
Calls have been made for the government to increase the annual limit on tax-free deposits into individual savings accounts (Isas), it has emerged.
According to Fidelity FundsNetwork, each person in the UK ought to be able to invest up to £10,000 in an Isa each year without seeing part of their interest taken by the tax man.
Many people use Isas as a way of saving for children and if such an increase is not feasible, the financial services firm would like to see the government at least make more of a commitment to supporting consumers in their savings efforts.
However, Fidelity FundsNetwork has welcomed the changes to the Isa system that are set to be introduced next month.
"The annual Isa allowance falls far short of what we believe it should be - either an increased limit to £10,000 or some commitment from the government that the limit will increase on an annual basis," said David Dalton-Brown, head of Fidelity FundsNetwork.
Under the new Isa system, account holders will be able to transfer their cash assets to an equity-linked equivilent without facing charges, which the Tax Incentivised Savings Association recently claimed will bring "huge benefits".
