Savers who lost tax advantages when they withdrew money from Northern Rock ISAs during the credit crunch will be able to re-deposit the money into any ISA and regain their tax advantages.
The Government has given savers a deadline of 5 April 2008 in order to take advantage of the tax break.
In order to restore tax advantages, savers must either return their funds to a Northern Rock ISA or obtain a certificate for the amount withdrawn from Northern Rock to present to a new ISA provider.
The tax advantage only applies to funds withdrawn between 13 and 19 September
Commenting on the move, Kitty Ussher, economic secretary, says: "To ensure that Northern Rock ISA savers are not penalised by the financial instability in the market. I can announce today that in these exceptional circumstances, the Government will allow the people affected to re-invest their money into any cash ISA, including Northern Rock's, and thereby restore their tax advantages."
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