Ahead of Monday’s budget Bill Packman, Wealth Management Partner, KPMG UK, calls on the Chancellor to learn from the reaction to Lifetime ISAs (LISAs), and consolidate the range of ISAs available to help savers and investors:
“With a fifth of us spending over 50% of our wages on payday, it is incumbent on legislators to make saving and investing as simple as possible. ISAs are the gateway product for everyday consumers to access wealth management.
“Since their introduction last year, LISAs have proven to be less popular and more difficult to administer than expected.
“There’s a lesson and an opportunity here for the Chancellor. Consolidating the range of ISA options would make it easier for customers to understand and more attractive for providers to offer. Given the mediocre take up of LISA, now seems like the right time to streamline the product suite.
“I hope the Chancellor takes this opportunity to make it easier for savers and investors.”
Notes to editors:
• The Treasury Select calling for Lifetime ISAs to be abolished can be found here: www.parliament.uk/business/committees/committees-a-z/commons-select/treasury-committee/news-parliament-2017/household-finances-report-published-17-19/
• Launched in April 2017, the Lifetime ISA is a longer-term tax-free savings account offered to adults under-40: www.gov.uk/government/news/lifetime-isas-available-from-6-april-2017
For more information, contact:
Jamie Bullen, KPMG UK
Christina Bridge, KPMG UK
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 14,500 partners and staff. The UK firm recorded a revenue of £2.2 billion in the year ended 30 September 2017. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.