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UK ministers are thinking of cutting £ 20,000 £ tax without tax Isa, but the debate with the city of London figures the level at which it should be covered, according to two people familiar with the situation.
In a meeting with older executives from banks including HSBC, Barclays and NatWest on Thursday, City Minister Emma Reynolds discussed Isa market reform as part of a broader effort to help the pipe listed in London.
People familiar with the situation told Times that the discussion affected the reduction of tax-free allowance-an action for which some city groups have lobbied in recent months, seeing it as a way to attract money into capital funds and internal shares.
“It is still a decision that they are (treasure) by being caught as part of a broader discussion on how you encourage people better to save for the future,” the person known in the meeting says.
A special government figure said the reception was for the government to cut the threshold for Isa without tax money.
FT reported at the weekend that the government was preparing to start a market compilation in order to encourage savers to move from investment cash and increase London’s sick stock market.
According to the current regime, individuals can hold up to £ 20,000 a year in a mix of cash and investment without income and tax profits. There are four main ISA products, of which the cash is the most popular so far, with £ 300 billion.
Anydo to reduce the tax-free cash no threshold would mark one of the biggest shocks in the UK savings markets after the ISAs were created by the then Chancellor of Gordon Brown in 1999.
Savings poured 4.2 billion pounds of cash in March, up to nearly one -third compared to a year ago, according to the Hargreaves Lansdown investment site.
Meeting with lenders – which also included Lloyds Banking Group, nationwide and TSB – is one by one a series between treasury and city parts, ranging from banks to industry organs, to Isa market reform.
The treasure had planned another meeting on Monday with the main leaders of retail investment, including Dan Olley of Hargreaves Lansdown and Michael Summersgill of Aj Bell, according to people familiar with plans.
The discussion was expected to focus on money and invest, as well as invest in Assets in the UK, one of the people said.
In a statement to FT after the meeting, Chancellor Rachel Reeves said: “At the moment, there is a limit of £ 20,000 for what you can put in cash or in capital, but we want to get that proper balance.”
She added that she wanted to create “more a UK Culture of Retail Investment” in order to “get better returns and support the ambition to grow the economy, creating good works throughout the United Kingdom”.
Fidelity International is one of the groups that has called on the government to create a single Isa within which people can spend between cash and investment, while capturing the amount that can be kept with money at £ 4,000.
However, others have pushed the idea of capturing cash without tax without tax, warning that the change would not promote investments in the capital of the United Kingdom.
UK finances, a trade body, recently said he wanted to “maintain annual cash compensation without tax without £ 20,000 to avoid restraining consumer options.”
Additional reporting by Achila Quinio to London
