Market Analysis Explainer: Will the British Isa revive the FTSE - and could it work for the Irish market? Chancellor Jeremy Hunt introduced an extra £5,000 tax break for investors to put cash in UK equities
However, those campaigning for political assistance to aid the ailing Iseq aren’t likely to be envious or look for similar proposals in Ireland. Isas have been around since 1999 and allow people in the UK to make investments without being subject to income tax, tax on dividends or capital gains tax, up until a limit. The idea behind them is that people should be putting their money to work by investing in companies to generate returns rather than holding cash in savings accounts.
The £5,000 top-up is just that - a top-up to an existing, and expensive, scheme. It is an extension of the £20,000 existing tax-free maximum which can be invested anywhere in the globe. Overloading on the UK economy, which is full of what some parties call old school companies - like financials and energy stocks - could leave investors exposed when market dynamics shift.