An execution only broker, Reyker, has issued a warning following an 86% increase in the numbers of people closing their ISAs due to the loss of the ability to reclaim the 10% dividend tax credit for equity based holdings within an ISA. The withdrawal of the ability to reclaim the credit took effect on 6 April 2004.
Our view
We predicted this sort of possibility many, many months ago.
See our Money Clinic Feature - ISAs are they really worth it .
Given that ISAs still offer tax efficient savings including profits or gains free form Capital Gains Tax - we think they are still a worthwhile investment.