Apr 4 2008
The Treasury has hailed the changes it has introduced to the individual saving account (Isa) system in the UK.
According to the government, the introduction of a higher threshold for tax-free savings will be beneficial to some 17 million people over the coming 12 months.
Many people use Isas as a way of saving for children and investors in these accounts will be able to add £3,600 in cash next year without being hit by the tax man.
In addition to those who already have an Isa open in their name, the government has suggested the increased incentives associated with these accounts will encourage more people to start saving.
"This move builds upon the success of Isas, which this government introduced in 1999 in order to develop and extend the saving habit and to ensure that tax relief on savings is more fairly distributed," said Angela Eagle MP, exchequer secretary to the Treasury.
Meanwhile, Prudential predicted a rush of Isa investment this week as the current tax year comes to an end.
