The Tax Incentivised Savings Association (TISA) has welcomed Treasury proposals which will give investors affected by the failure of financial firms the opportunity to use compensation to top up their ISAs beyond the current subscription limits.
Under existing rules, any reinstatement of ISA investments previously held in failed firms still count towards the £10,680 annual limit, of which £5,340 can be cash. However, under the Treasury's proposed changes, which will be made available for consultation in the New Year, investors who have lost their cash ISA will be permitted to reinstate up to the balance of their account at the time of the firm's failure in a new ISA. Meanwhile, investors in stocks and shares ISA will be allowed to invest any compensation - or any similar payment - derived from assets held within their ISA in ...
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