07 Mar 2024
Chancellor Jeremy Hunt used the 2024 Spring Budget to introduce a new 'UK ISA', which will allow an additional £5,000 annual investment in UK equities to be made tax-free.
The new ISA forms part of the government's growth package and is intended to channel more investment into UK equities. The government has outlined details of the new UK ISA in its official Budget documents, and stated that its purpose will be to support savers and open up new investment opportunities for individuals.
The new UK ISA will allow individuals to invest up to £5,000 in UK businesses, including stocks and debt, and not have to pay any capital gains tax (CGT) on money made on their investment.
According to the government, the UK ISA will be a £5,000 allowance in addition to the existing ISA allowance and will be a new tax-free product for people to invest in UK-focused assets.
Commenting on the new ISA, the Chancellor said: 'Following calls from more than 200 representatives from the city and our high growth sectors I will reform the ISA system to encourage more people to invest in UK assets.
'After a consultation on its implementation I will introduce a brand new British ISA which will allow an additional £5,000 annual investment for UK equities with all the other tax advantages of other ISAs.
'This will be on top of existing ISAs and will ensure UK savers can benefit from the most promising UK businesses as well as supporting those businesses with the capital to expand.'