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Changes to Isas will benefit consumers say experts

January 22, 2008 by admin  
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The changes to Isas anticipated to occur in April of this year have been welcomed by industry experts.

Robin Keyte, a director with the financial services firm Towers of Taunton, said that getting rid of the definition of mini and maxi Isas should benefit both the customer and the Inland Revenue.

The increase in the maximum amount a person is able to invest in an Isa in a tax year, from £3,000 to £3,600 should help encourage saving as well as rise in line with inflation, he added.

“You could also say that with the credit crunch digging in, it’s very timely, because people want to reduce their spending. The timing is good,” Mr Keyte said.

Removing the ‘Personal Equity Plan’ (PEP) description and treating the funds as Isas should also help simplify the situation for the consumer.

He said that there’s “no point” in keeping the name different, due to the amount of similarities between the two products.

According to figures released in November 2007 by HM Revenue and Customs, the amount of money saved in Isas has now reached £208 billion.

Tags: line, personal, Towers, Personal Equity Plan, equity, services firm towers

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