To ask Her Majesty's Government whether they have given consideration to scrapping the annual ISA savings limit in favour of a £1 million lifetime contributions limit, as proposed by the cross-party Association of Accounting Technicians Individual Savings Account Working Group; and if not, why not.
20 March 2018
The Government notes the Association of Accounting Technicians Individual Savings Account Working Group’s proposals regarding ISAs. The Chancellor of the Exchequer keeps all tax policy under review and information provided to us is considered as part of this process.
The Government wants to continue to support people to save in the way that is right for them, which is why there are a range of options to help people make their money go further.
ISAs form part of this support, and remain an incredibly popular product with around half of UK households having one.
In April 2017, the ISA allowance increased by a record amount to £20,000. This, combined with the introduction of the Personal Savings Allowance in April 2016, has given savers more flexibility when choosing the product most suitable for them and means that over 95% of people have no tax to pay on their savings income.