Home
About Us
Our Services 
Latest News 
Online Resources
Recruitment 
Contact Us Solicitors’ Bulletin News - January 2012
Savers can reinvest lost ISA funds
The Treasury has announced new rules to protect savers who have invested in an ISA with a financial institution which subsequently collapses.
Although savers can currently invest up to £10,680 in an ISA (of which £5,340 can be in cash), the previous rules meant that any portion of this amount invested with such a firm would have counted towards the annual limit.
The new plans enable savers to reinvest the equivalent amount with a different provider in the same tax year.
Furthermore, individuals can also invest any compensation received if their stocks and shares ISA is impacted by a financial institution’s collapse. Those affected by the fall of Lehman Brothers can invest the same amount elsewhere, whether they have obtained any compensation or not.
According to the Financial Secretary to the Treasury, Mark Hoban, “the changes will enable investors whose ISAs are affected by the failure or default of a financial firm to continue to benefit from tax-advantaged savings.
“They also demonstrate the government’s commitment to ensure that the ISA remains a secure, accessible and tax-advantage saving product.”
This April, the ISA investment limit will increase to £11,280.
For more information on ISAs and other savings and investment products, please contact MT Financial Management.
Related Links
