Chancellor Gordon Brown has just confirmed early in his 2006 Pre-Budget Report Isas will continue to exist to 2010 and beyond.
Delivering his speech in the House of Commons, Brown said:
“The number of people with tax-free savings exceeds 16 million, in contrast to the 9 million under the Tessa regime.
“The tax-free advantage of individual savings accounts will continue beyond 2010 and they will be permanent,” adds Brown.
He also confirmed a new tax relief system will be introduced on January 1st, 2007on film investments, as he says the films made in the UK has risen by 50% since 1997 and is keen to encourage more production.
The restriction preventing investment trusts with rental income from being an investment inside an Isa is confirmed as being dropped.
Under existing Isa rules, eligible investment trusts that have rental income can not be held within the wrapper but there is no such exclusion under Peps.
The mini/maxi restriction in Isas is also being abolished and Peps are being brought within the Isa wrapper with the rules of the two schemes becoming merged. As a result Peps effectively will cease to exist and the monies originally held within Peps will be taxed under the Isa regime.
One of the other change which has previously been announced, include allowing Child Trust Funds (CTFs) to rollover into Isas once they reach maturity.
Meanwhile the rules surrounding Real-Estate Investment Trust (Reit) are to be relaxed to make it easier for newly-established Reits firms to join the regime. The changes will allow new firmsto enter the rgime without having to first meet the requirement that 75% of the business by assets or income consists of property rental activity provided that they meet this requirement within one year of entering the market.The entry charge of 2% of the gross market value of investment will then be levied at the end of the first year based on the value of properties held at that point.IFAonline
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till