Spring Budget 2024: thorough consultation is essential for UK ISA

Karim Haji, Global and UK Head of financial services at KPMG, comments:

“The Chancellor’s proposal to consult on a tax-free UK ISA is an attempt to encourage London listing and retail investment at home rather than overseas and reduce barriers to trading for the general public, and encourage saving.

“Given the reported underperformance of the FTSE100 versus global indices over the last 15 years, the Chancellor hopes such a move would boost trading volumes in the UK by reducing the cost of trading and enhancing returns on those trades.

“However, any consultation will need to consider how to drive greater investment while ensuring savers and firms selling a UK ISA fully understand the risks and opportunities involved. The proposals must also be considered as part of the much wider issue that is the UK and London’s competitiveness agenda. There is no single fix.”

-ENDS-

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