Jeremy Hunt, the UK Chancellor, recently hinted at government plans to create a British Individual Savings Account (ISA) investing in shares of UK-based companies.
Hunt gave a nod to the concept at the budget set from spring, which would help bolster his efforts to revitalise the stock market of the UK.
Commenting on the potential incentive, Hunt said:
“Do I want to do things that mean that more UK capital is invested in our most promising companies? Absolutely. I think that something like a British ISA could be very good at that.”
The British ISA would enable investors to purchase a set number of UK company stocks before paying any tax. At present, the UK treasury charges a 0.5 per cent levy, called the share purchase stamp duty tax, for shares bought in Britain.
UK consumers with concerns regarding the complexity of tax rules when trading often take investment advice in Shropshire, Buckinghamshire and other affluent part of the country. Experts on assets and tax strategies, wealth managers help their clients navigate complicated areas of investing.
The incentive mentioned by the Chancellor was expected to be announced in his autumn statement, which took place last November. Many believe that its aim is to complement the UK government’s plan to start selling shares in NatWest. The government owns 38.6 per cent of the financial institution after it bailed out in 2008.
The proposal of a British stock ISA has support from City groups like UK Finance, who have long lobbied for its introduction.
