IMA calls for more ISA incentives

The Investment Management Association (IMA) calls on the Government to raise the ISA allowance to £9600 and consider introducing more incentives for saving.

Commenting, Richard Saunders, Chief Executive of IMA said: "Ten years on, the ISA is still a great product - a straightforward, simple way to roll up savings and ultimately use them completely tax-free.

As IMA's statistics demonstrate, since 2004, stocks and shares ISAs have seen annual outflows following the healthy inflows of previous years. In part, this can no doubt be explained by the performance of the stock market over the last decade. But the time is also ripe to look for ways to rejuvenate the incentives to save in ISAs. A good start would be to raise the ISA allowance to £9600, a level which would restore its value taking account of inflation since its introduction."