UK Savers To Be Hit By Cut To ISA Allowance

The individual savers in the United Kingdom are expected to further feel the financial heat

. After job losses and cut in interest rates there could be more bad news in the horizon. It has been revealed that the government could cut the annual ISA limit as part of its spending review later this month. This is expected to hit the UK savers who have already been burdened by the rising inflation which is above the target set by Bank of England.

Currently, all UK savers can put 10,200 in an ISA account, with 5,100 in shares ISA and the remaining funds in a cash ISA. This limit was only recently raised in April from 7,200 but Labour MP and Treasury Select Committee member Andy Love has warned that the Government could lower it to claw back funds. A final decision on the matter is scheduled for October when comprehensive spending comes for review.

The Treasury lost out on 2.2 billion in the 2008-2009 financial year from ISAs as the accounts are not eligible for tax. Now in order to boost the economy further and increase its public spending to earlier levels, the government is attempting to earn more taxes from the individual savers. This group has also been one of the worst hits in the recent years as the interest rates on savings has fallen to historically low levels.

Tom Stevenson, investment director at Fidelity, told the Daily Mail: "ISAs should be viewed as a year-round investment and shouldn't just be considered at the end of the tax year. We encourage those who usually leave it late to think about the difference it can make to invest early. Put simply, it gives your money more time to grow."

Most of the UK customers are not happy with this decision and feel that this might have adverse effects on the savers.

UK Savers To Be Hit By Cut To ISA Allowance

By: Harry Smith

POST COMMENT

Make Cpalead Earn For You The Puzzle of Life Can 26 in Rims Enhance Your Daily life? Folhas rasuradas Jiu Jitsu Belts Requirements Wash Sale Rules Keeping Short Term Capital Losses Deductible Sarees for Elegant Look on All Occasion Are Your Transformers Ready for the ‘Smart Grid'? 6 ways to get instant links All about Feminized Doggies Nuts Seeds Tendons in the Knee Photographers: Capturing Life's Unforgettable Moments DJ Nawed - An Introduction