Over half of UK adults took out an Isa in the previous year, making the 2003/04 tax year the most popular since Isas were introduced in 1999, suggests IMA research.
A survey of 500 people in November 2003 – through enquiries to the Investment Management Association and telephone interviews conducted through MIPP research – says 57% of respondents had already taken out an Isa in the last tax year, compared with 52% in the previous 2002/03 tax year.
Moreover, over half of those again (55%) were basic rate taxpayers compared with only 18% of those in the higher rate tax bracket, and 53% preferred the cash component of a mini cash Isa compared with 36% opting for the maxi Isa.
Should the stock markets again hit volatility, at least 64% of those questioned say they would hold onto their investments – compared with just 5% who would sell their investments.
That said, IFAs do not appear to be the main source of information on Isas, as 56% of respondents preferred to gather information from press articles, compared with 53% use Isas while 61% of Isas were purchased through banks or buildings societies compared with 22% bought through an IFA.
There was some positive news for IFAs who prefer to give commission-based financial advice, as 39% of those questioned say they would prefer to pay for that advice through commission.
Individuals who are prepared to pay through fees say they would only be prepared to pay an average £44 per hour or a flat fee of £88.IFAonline
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