The government has missed an opportunity to revisit the 10% tax credit on equity ISAs, Neptune Investment Management says.
Deputy managing director Richard Green says more could have been done in Chancellor Alistair Darling's Pre-Budget Report (PBR) to encourage investors to save into their ISAs.
Green claims ISAs are now the preferred tax-efficient savings vehicle for long-term savers and is calling on the Government to restore their tax-free status.
He adds: "Since 1999 the government has made the ‘tax credit' deducted at source non-reclaimable. Consequently, for many investors who may not pay CGT anyway, the tax-free benefit is largely illusory.
"We strongly encourage the government to revisit this mainstream savings vehicle and restore its fully tax-free status."
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created