The UK government is set to introduce a new British ISA later this year that will allow anyone with savings of £5,000 or more to invest in UK businesses. The aim of the new ISA is to promote investment in UK businesses and strengthen the City of London.
Chancellor Jeremy Hunt announced the upcoming introduction of the British ISA, stating that it will provide British savers with the opportunity to benefit from the growth of promising UK businesses and support them with the capital needed for expansion. The new ISA will be in addition to the existing ISA allowances.
Financial expert Martin Lewis took to Twitter to share his thoughts on the new British ISA, noting that there will be an extra £5,000 available for investments in British assets. This means that individuals who max out their £20,000 tax-free ISA allowance will be eligible for the British ISA.
Kevin Brown, a savings expert at Scottish Friendly, praised the extension of the ISA allowance, stating that the additional £5,000 for investing exclusively in the UK was encouraging. He emphasized the importance of saving and investing, especially during economic uncertainties.
However, Brian Byrnes from Moneybox expressed some skepticism about the benefits of the British ISA for retail investors. While the new ISA may potentially benefit British businesses in the long run, Byrnes believes that it may not deliver significant benefits to the majority of retail investors. Nevertheless, he welcomed any reforms aimed at encouraging investment.