Fears that cuts to tax breaks linked to ISAs will harm the propensity for long-term savings seem to be realised in research conducted by NMG Research on behalf of ISIS Asset Management.
On the basis of about 750 responses from investors previously invested in ISAs, the survey suggests nearly a third, 30%, feel they will be “less inclined” to save because of the loss of tax breaks.
However, the figure rises to 40% among those in the 45-to-54 age group, and 45% in the 55-to-59 age group, ISIS says.
Some 51% state the reduction in the ISA limit to £5,000 from £7,000 in the next fiscal year “will not make any difference” to their view.
Just 4% state they are more likely to invest in future.
ISIS says the results offer further evidence of the strong need for the government to make up its mind on how fiscal policy can be used to stimulate long-term savings.IFAonline
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