A number of industry trade bodies are now starting their lobbying with the Chancellor to retain the tax credit incentive reclaim on ISAs that is due to finish in 2004.
Stocks and shares based ISAs have the ability to reclaim 10% tax already paid by company share dividends. This presents attractive options for income and growth for both basic rate and higher rate tax payers. The move to withdraw it will obvioulsy impact on the attractiveness of ISAs.
In our own discussions with the Inland Revenue, we found that there were no plans to continue this tax incentive.
See our Money Clinic Feature on ISAs are they really worth it? in the registered users Client Centre.
Visit our Guide to Choosing an ISA in the Savings Adviser.com.