Friday 1st December 2006
Building society Nationwide has called on chancellor Gordon Brown to increase the limit on individual savings accounts (Isas).
The current maximum annual deposit is £7,000, which Nationwide believes should be raised to £9,000, the amount which could be placed in the predecessor to Isas, the Tessa (Tax Exempt Special Savings Account).
Stuart Bernau, executive director of Nationwide, said: "Isas have been a savings success story and we are delighted that the current Isa is to become a permanent feature."
"However, the tax breaks for saving simply arent worth what they were seven years ago," he added, claiming that efforts must be made to "redress the balance".
A letter to Mr Brown added that there should be further provision for tax-free savings for the under-18s, as many are too old to be allowed child trust funds yet too young to hold Isas of their own.
Nationwide says that Isas can be either entirely formed on an equity basis, or as a combination of equity and up to £3,000 in cash.
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