Half of advisers (49%) believe scrapping or reducing the ISA allowance would prompt more clients to invest in those, a new survey by Opinium has revealed.
However, more than half (58%) of advisers also think increasing the annual allowance beyond £20,000 would encourage clients to invest in stocks and shares ISAs.
The findings follow growing speculation that the Chancellor will announce changes to the ISA regime, including a possible reduction of the annual allowance to £4,000. While no announcements were made in the Spring Statement, the Government confirmed that it is looking at options for ISA reform in a bid to boost retail investment and support economic growth.
Alexa Nightingale, global head of financial services research at Opinium, commented: “The mooted shake-up of cash Isas was not announced in the recent Spring Statement, but the chancellor is said to still be considering this move, in order to boost investing among UK savers.
“With almost half of IFAs agreeing that such a policy change could boost investing, all eyes will be on the Autumn Budget to see if this change comes to fruition.”
When asked what actions would encourage investment in stocks and shares ISAs, one in three (29%) advisers cited the removal of tax benefits of cash ISAs, while 26% said more access to advice and education would help.
Meanwhile, nearly a fifth (18%) said more clients would be encouraged to invest if stocks and shares ISAs were simplified, while 16% believe the removal of stamp duty on UK shares would drive interest.
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