A new UK ISA wrapper is one of the initiatives being considered to help boost interest in the UK’s flagging stock market, according to reports today.
Representatives of firms in the City reportedly met with Chancellor Jeremy Hunt today to discuss ways to boost London’s appeal as a place for firms to list.
Chief executives of fund managers Abrdn, Schroders and HSBC Holdings were among those at the breakfast meeting, according to Sky News.
Last year, Hunt unveiled a series of reforms aimed at stopping the drain of companies leaving the LSE for New York and stimulating more institutional investment in UK-listed companies.
Further measures are expected in March, including potentially the UK ISA, which would funnel investment from retail investors into London-listed companies.
"The chancellor wants to hear ideas from industry about how such a plan might work and how they see it supporting the City and the UK economy," a source told Sky.
Earlier this week, wealth platform Hargreaves Lansdown also recommended that the chancellor boost ISAs, adding that it is the tax wrapper’s 25th anniversary in March and that it has been a huge success.
“There’s a reason why ISAs are so popular, and have attracted £741.6 billion (by April 2022) from 22.2 million investors.
They’re a brilliant tax-saving solution for the vast majority of investors, and a lifeline for many savers – particularly as savings rates have risen and pushed more people over the personal savings allowance. They’re set to save us an estimated £6.7 billion in tax this tax year."
Hargreaves wants the chancellor to increase the allowance from the current £20,000, streamline the options on offer, and make lifetime ISAs (Lisas) more appealing especially their property allowance.