With effect from 1 July 2015 the UK has extended the list of investments that can be held in an individual savings account (ISA), Junior ISA or Child Trust Fund (CTF). Savings in an ISA, Junior ISA or CTF are eligible for tax relief including an income tax exemption subject to certain conditions. Investments in an ISA, Junior ISA or CTF may now include the following:
• A wider range of securities including those admitted to trading on certain markets for small and medium enterprises (SMEs);
• Securities and shares issued by housing associations and other cooperative societies or community benefit societies; and
• Shares in a broader range of investment trusts.
Restrictions on the eligibility of shares in investment trust to be held in ISAs will be relaxed. They will now be eligible to be held in an ISA even where more than 50% of the value of the trust’s investments is in securities that would not, if purchased on their own, qualify to be held in an ISA.
This increases the choice for savers and allows more support for companies including SMEs through ISAs and CTFs.
