Chancellor Jeremy Hunt announced a new type of savings account called a ‘British ISA‘ in the Spring Budget to help people invest more in UK companies. This account allows people to invest an extra £5,000 without paying tax on the money they make from these investments. This is in addition to the £20,000 they can already invest tax-free every year.
The government wants to make it easier for people to invest in British companies and help these companies grow. To figure out the best way to do this, they will ask people for their ideas until June 6.
In the past, the government made it simpler to have different kinds of ISAs in one year instead of focusing just on UK investments. But, not as many people are investing in the UK anymore. Some reasons include pension funds preferring to invest in bonds over UK companies and the UK market not doing as well as other countries. Because of this, a lot of money has been taken out of funds that invest in the UK.
The new British ISA is a way to encourage people to keep their money in the UK and invest in local businesses. Some investment experts think this is a good idea because it could help the UK economy and businesses grow.
However, some people are worried that by focusing too much on investing in the UK, they might miss out on making more money from investments in other countries. In the past ten years, global investments have generally made more money than those in the UK. So, while investing in the UK might help local businesses, it’s also important to think about investing in companies around the world to make the most money.
