UK ministers consider the reduction in the amount of cash without taxes

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Ministers of the United Kingdom plan to reduce the amount of cash without taxes of £ 20,000, but debate with the city of London is the level at which it should be faced, according to two people who know the situation.

At a meeting with senior executives of banks such as HSBC, Barclays and Natwest on Thursday, city minister Emma Reynolds A market As part of a wider attempt to help the funnel more money in listed shares in London.

The people who are known in the situation told Financial Times that the discussion had reduced cash bonus without taxes, a movement for which some groups in the city have strongly pressured in recent months, seeing it as a way to attract money to capital funds and national shares.

“It is still a decision that (the treasury) is posed as part of a wider discussion on how you better encourage people to save for the future,” said a person who knew the meeting.

A separate government figure said that the expectation was that the Government would reduce the threshold for ISAS of tax -free box.

FT reported the weekend that the government was Preparing -to launch a market reviewIn order to encourage savers to go from cash to investments and increase the London values ​​market.

Under the current regime, people can deal with up to £ 20,000 annually in a combination of cash and free income tax investments and capital gains. There are four main products of Isa, of which cash is, with much, the most popular, with 300 million pounds of savings.

Any movement to reduce the tax -free cash threshold would mark one of the greatest shakes in the United Kingdom savings markets, as the ISAs were created by the then Labor Chancellor Gordon Brown in 1999.

The Saviorities poured 4.2 million pounds to ISAS in cash in March, up to almost a third compared to the previous year, according to the Hargreaves lansdown investment site.

The meeting with the lenders, which also included Lloyds Banking Group, Nationwide and TSB, is one of the series between the Treasure and some parts of the city, ranging from banks to industry bodies, reforming the Isa market.

The treasure scheduled another meeting on Monday with main executives of detailed investment sites, including Dan Olley by Hargreaves Lansdown and Michael Summersgill in Aj Bell, according to the people who know the plans.

The discussion was expected to be focused on cash and investing, as well as investing in UK assets, one of the people said.

In a statement to the FT after the meeting, Chancellor Rachel Reeves said: “At the moment, there is a limit of £ 20,000 in what you can put in cash or in actions, but we want this balance to be correct.”

He added that he wanted to create “more culture in the United Kingdom of Retail” for “obtaining better returns on savers and supporting the ambition of growing the economy, creating good jobs throughout the United Kingdom.”

Fidelity International is among the groups that have asked the Government to believe a single ISSA in which people can change cash and investments, while also obtaining the amount that can be cash at £ 4,000.

However, others have been promoting the idea of ​​collecting cash without taxes again, warning that the change would not promote investment in the actions of the United Kingdom.

The United Kingdom Finance, a trade body, recently said that it wanted to “retain the annual amount of cash without taxes of £ 20,000, to avoid restricting consumer options”.

Akila Quinio’s additional reports in London