Rachel Reeves is preparing to launch ISA review

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Rachel Reeves is preparing to launch a review of the ISA market within weeks in a batch to encourage savings to direct more money from tax -exempt to British shares, according to persons familiar with the plans.

Industry numbers said that the Treasury will start consulting to acquire views throughout the city of London on how to fix the ISA system in the United Kingdom, while the chancellor seeks to enhance what you call “a culture in the UK to investment investment.”

This step can pave the way for one of the largest disposal of the ISA market since its establishment in 1999, after calls from some large city companies to achieve the amount that can be kept in cash exempt.

the UK It contains four major ISA products, including Cash ISA, which is largely the most popular product, includes 300 billion pounds of savings at the present time. ISAS allows individuals to provide and invest up to 20,000 pounds per year free of income tax and capital gains.

The treasury paper is expected to be launched within weeks and perhaps in the speech of Reeves House Palace of the city’s executives in July, when the government aims to spread its strategy in financial services and its competitive strategy.

“The Mansion House is about getting more money in the UK,” said one of the persons in view of the plans.

“No decisions have been taken,” the Treasury said, but the government was “looking for options for Isas reforms that get the balance between cash and shares.”

Reeves said this month that she wanted to “create more culture in the UK for retail investment, like what she sees in the United States”, in order to help savers to achieve better returns and “support ambition to develop the economy.”

Financial times It was mentioned in January City companies were urging Reeves to expand the scope of tax exemptions for cash wireless standards. Smack poured 4.2 billion pounds in ISAS cash in March, an increase of almost a third compared to the previous year, according to the investment site Hargreaves Lansdown.

Companies that include the Insurance Group of Phoenix and the London Stock Exchange Group in January have told the cash money that can generate better returns for savings if they are invested in stocks and stocks, while supporting the stock market in London.

Fidelity International is among the companies that called for one ISA product, through which individuals can move between cash, shares and stocks, and they suggested reducing the cash part to 4000 pounds.

Despite speculation, Reeves The changes are not determined In the spring statement in March, although the government at that time said it was “looking for options for reforms” in order to “obtain a balance between cash and stocks to gain better returns for savings, enhance the culture of investment in retail, and support the task of growth.”

One of the industrial numbers said that consulting should lead to “something more realistic in the budget” in the fall. They added: “We know that the cabinet is keen to listen, so they may find a paper that helps to give the official character to these talks and reduce the load of the meetings that were asked.”

The government is “completely right to look at whether the current ISA system is doing enough to enhance the health culture of investment in the UK.”

But Carol Knight, CEO of the Investment and Savings Alliance, a non -profit organization, said, “Reducing the tax benefits of (cash will not encourage people to invest more,” and urged the ministers to provide better support to the British on the best way to benefit from their savings.