Abbey: ISA reform

Abbey, one of the biggest Cash-Mini ISA provider responds to the Government's announcement on reforms to ISAs. Alexia Kilby, Head of Savings at Abbey commented: "Abbey broadly welcomes the ISA reforms confirmed today. In particular, the indefinite extension of ISAs and the option to automatically roll up a child trust fund into an ISA should give greater confidence in long term savings. We also welcome Government initatives to allow people with existing cash-ISAs to switch to an investment that might provider greater longer term returns. In the past, the loss of the tax-wrapper would have been a significant barrier stopping this.

"However, it is disappointing that the Government hasn't taken the opportunity to simplify the regime by allowing the same investment limits in ISAs regardless of underlying assets. Despite encouraging reforms, ISA limits have failed to keep pace with inflation since ISAs launched in 1999. We urge the Government to further extend these limits to encourage long term savings."