Push to revive London market
Chancellor Rachel Reeves is preparing a sweeping reform of Britain’s Individual Savings Account (ISA) system in a bid to boost investment in UK companies – including a possible minimum shareholding requirement and a stamp duty tax break for domestic equities.
The plans, which build on the abandoned Conservative proposal for a “Brit Isa,” are part of Reeves’ wider strategy to “get Britain investing again” ahead of her November 26 Budget.
Treasury sources confirmed that discussions with financial institutions are under way over removing the 0.5 per cent stamp duty on UK-listed shares held within stocks-and-shares Isas.
Reeves is also considering rules that would require Isa holders to invest a portion of their funds in British companies, echoing the former personal equity plans (PEPs) in place before 1999. The move would mark the biggest shake-up of the Isa regime in more than 25 years.
From savings to investment
The chancellor is determined to shift savers’ focus away from cash and towards equities to support economic growth and strengthen the London Stock Exchange. Among the ideas under review is capping the annual cash Isa limit – currently £20,000 – potentially cutting it to £10,000 to encourage more investment in shares.
“The chancellor has been clear that she wants to get Britain investing again,” a Treasury spokesperson said.
“Reforms will ensure any new investment benefits UK companies and growth.”
Industry figures have broadly welcomed a stamp duty exemption for UK shares within Isas. Jason Hollands of Evelyn Partners said a minimum UK allocation of “25 to 50 per cent” could help channel funds back into domestic markets, while ensuring tax benefits directly support British businesses.
