UK Chancellor John Healey will abandon a proposal to cut the Cash ISA annual
allowance from £20,000 to £12,000, the Financial Times reports. People familiar
with the matter said Healey concluded using tax breaks reductions to push savers
into equities would be the wrong approach; the cut had been proposed by his
predecessor Reeves to steer funds toward UK businesses. Healey is expected to
say in Wednesday’s budget he will promote stock investing and its benefits to
savers rather than reducing tax relief on savings. Cash ISAs are the UK’s most
Popular savings vehicles and ISAs are exempt from interest tax, capital gains tax
and income tax.
