Taxation - Scepticism over ISA tax draft
Tax regulations on individual savings accounts met with a sceptical reception from the personal finance industry this week.
The industry’s verdict was that the regulations were solid, but failed to strike a balance between strong regulation and flexibility.
The first draft of regulations for ISAs, which are due to replace Peps and Tessas next spring, was issued last week.
It included plans to enable savers to buy ISAs over the phone or via the Internet, as well as an outline of how ISA providers are to be taxed.
John Whiting, head of personal tax at Price Waterhouse, said: ‘You have to tread a thin line between making the product affordable and making it well-regulated.
‘In the wake of the pensions mis-selling scandal, the government is afraid of an “ISA mis-selling” scandal, and has issued tight regulations. This needs to be an affordable scheme as well as a safe one, and a huge regulatory burden will result in higher charges.’
Others believed the government’s Cost Easy Access Terms standard, which made it easier to base the equity part of ISAs on higher-risk tracker funds rather than safer passively managed funds, negates the cautious nature of the tax regulations.
Roger Cornick, chairman of future ISA provider Perpetual, said: ‘The government has taken great care in these regulations to increase the flexibility and accessibility of ISAs, but at the same time it has made them riskier.’
The numbers you crunch tell a story. Your expertis...
26yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleHMRC sees the profit or loss made on buying and selling of exchange tokens as within the charge to Capital Gains Tax (CGT). Read More...
View articleThe recent IR35 case involving former Liverpool footballer and Sky Sports presenter, Phil Thompson, has drawn attention to the complexities and implic...
View articleFrom January 1, 2024, HMRC will implement new tax rules affecting individuals who sell items on platforms like Etsy, Depop, and Vinted. The new regula...
View articleHMRC reveal a small majority of people are soldiering a significant proportion of income and capital gains tax, following FOI request. Data has reigni...
View articleSteven Pinhey, technical officer at the Association of Taxation Technicians (ATT), considers how the rules on deductible expenses work in a social med...
View articleATT technical officer, David Wright, considers the implications of HMRC’s decision to remove employees with income between £100,000 and £150,000 from ...
View articleThis was the fourth largest borrowing year since records began in 1993 Read More...
View articleATT technical officer, David Wright, provides an overview of the welcome relaxation to CGT provisions for separating couples looking to transfer asset...
View article