The Government has launched a consultation on changing the Individual Savings Accounts (ISA) rules to expand the range eligible to be held in stocks and shares ISAs.
It hopes that this will encourage consumers to save by allowing stocks and shares ISAs to invest in shares on the Alternative Investment Market (AIM) and by giving a set of savings accounts and life insurance policies a ‘kitemark’ stamp of approval.
The Treasury announced yesterday (March 13th) that the plans, which were first proposed in the Chancellor’s Autumn Statement, would provide “an important capital injection for small and medium-sized businesses”.
Also under the plans, companies that have been deemed too risky for ISAs in the past would be allowed in ISA wrappers. These include firms listed on the ICAP Securities and Derivatives Exchange (ISDX), which rivals AIM, as well as firms listed on alterative markets in the European Economic Area.
Economic Secretary to the Treasury Sajid Javid said that access to finance for smaller growing companies is key to promoting private investment and delivering sustainable economic recovery.
He added that the Government particularly wants to ensure that small businesses are able to access finance and support, which this change has the potential achieve.
The consultation runs until 8 May, after which time the Government will decide on what changes, if any, it will make. This means that there will not be a change in this year’s Budget as some had hoped.
Marc Stemmer offers financial planning advice to businesses and individuals; helping them to achieve their financial goals.