In our article, ISAs are they really worth it, as well as our Budget Coverage , we highlighted the fact that the ability for Stocks and Shares based ISAs to reclaim the 10% dividend tax credit is finishing next year. This will have some impact on performance.
The Chancellor made no moves in his Budget speech last month to amend this position and now the Tories, led by Shadow Paymaster General - Stephen O'Brien, is tabling an amendment to the Finance Bill 2003 to have the ability to reclaim extended.
The Finance Bill is the motion that takes the Budget just from being a Budget to the Finance Act 2003. Each budget is required to be passed as an Act of Parliament.
Our view
In our discussions with the Inland Revenue there was no indication that the ISA credit would be continued. In our experience, the Government tend to push the Finance Bill through as they require it to be tabled given their majority. However, the Chancellor and his advisers are 'clever cookies'. Expect some incentives as we near elections.
What's an ISA. Use our guide to choosing the right ISA for you.
See our feature on ISAs are they really worth it? Not sure? Need some help or advice with investments? Visit the Help Zone to find out about all the different ways that we can help you.
Why not try our discount Ask An Adviser service?