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Chancellor Jeremy Hunt has announced a new savings account in the Spring Budget in a bid to boost investment into UK firms.
Against the backdrop of inflation, Mr Hunt pledged to create a new British Isa to encourage more money into UK businesses.
He told the Commons: ‘After a consultation on its implementation, I will introduce a brand new British Isa which will allow an additional £5,000 annual investment for investments in UK equity with all the tax advantages of other Isas.
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‘This will be on top of the existing Isa allowances and ensure that British savers can benefit from the growth of the most promising UK businesses as well as supporting them with the capital to help them expand.’
Although more details are expected to be announced later, investors can access an extra £5,000 allowance each tax year which they can then inject into a UK-listed company, tax-free.
In his Autumn Budget last year, Hunt scrapped the single ISA limit to allow savers to open and pay into multiple accounts in one year without losing their £20,000 allowance which is set to come into force in early April.
He also allowed partial transfers in the Autumn Budget, meaning parts of one account can be merged with another.
Savers no longer need to reapply for an ISA each year if it is unused, and the minimum opening age for an account will be 18 across the board.
This is a developing news story, more to follow soon… Check back shortly for further updates.
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