The Treasury is to change its ISA rules to allow investors who lose their savings as a result of the collapse of a financial firm to reinvest their money without affecting their annual allowance.
Under current rules, any sum lost due to the collapse of a provider would fall under the annual allowance, currently £10,680, although the government has made allowances for several high-profile failures in the past.
The BBC reports that Mark Hoban, the Treasury financial secretary, has outlined, in a statement to MPs, plans to allow investors that have lost money to reinvest the equivalent amount in the same year without affecting their annual allowance.
Hoban says: “[The changes] will enable investors whose ISAs are affected by the failure or default of a financial firm to continue to benefit from tax-advantaged savings.”
He adds: “They also demonstrate the government’s commitment to ensure that the ISA remains a secure, accessible and tax-advantaged saving product.”
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