ISAs should be completely tax free, says Fidelity Go compare with our comparison table

ISAs should be completely tax free, says Fidelity

02 December 2009 / by Rebecca Sargent

ISAs should be completely free from tax, Fidelity International has claimed in an appeal to Chancellor of the Exchequer Alistair Darling.

As Mr Darling prepares his Pre-Budget Report, Fidelity is calling for him to "make ISAs completely tax free in a bid to jump-start the nation's savings and help people better prepare for their retirement and other financial needs."

According to Fidelity, ISAs are a key savings vehicle for everyone looking to build up a pot of money, and although they are tax efficient, they are not always entirely tax free.

Commenting, Gary Shaughnessy, UK managing director at Fidelity International said: "To my mind, the real goal for the Government is not rewarding those existing savers who can afford to invest more, but to encourage people without current savings to make a start to do so as early in their lives as possible."

And according to Mr Shaughnessy: "The only way to do this is to make ISAs tax free. Simplicity was at the heart of the ISA's success in its early years but changes to its tax-efficiency over the years have added unnecessary complexity and diminished the product in the eyes of the public.

"We need to make ISAs simple again to bring back their appeal and get away from the current situation where the value of the tax benefit varies with the asset class you are invested in."

Research conducted by Fidelity found that 95 per cent of the population admitted to not fully understanding the advantages of investing in an ISA, Mr Shaughnessy adds:

"Would-be savers are being put off by the perceived complexity of the once simple product – only a third of people we surveyed thought the cash ISA tax advantages are worth it and this figure dropped to one in 10 for a stocks and shares ISA."

© Fair Investment Company Ltd


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', eventAction: 'Account', eventLabel: 'Invesco Perpetual Monthly Income Plus' });">Invesco Perpetual Monthly Income Plus Fund ISAyes
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Popular monthly income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. 100% discount on initial charges.
', eventAction: 'Account', eventLabel: 'Henderson Strategic Bond Fund' });">Henderson Strategic Bond Fundyes
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The aim of this fund is to deliver a quarterly income to investors by investing in higher yielding assets, which will include most types of fixed interest securities such as high yield bonds, investment grade bonds and government gilts, as well as having the ability to invest a proportion of the fund in equities. Income is paid to you quarterly.
', eventAction: 'Account', eventLabel: 'Schroders Income Maximiser' });">Schroders Income Maximiseryes
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The Schroder Income Maximiser Fund ISA aims to deliver a target income yield of 7% pa, also providing potential capital growth. Income is paid to you quarterly. 100% Discount off Initial Charges.
', eventAction: 'Account', eventLabel: 'Invesco Perpetual Corporate Bond' });">Invesco Perpetual Corporate Bond ISAyes
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This highly popular fund aims to achieve a high level of overall return with relative security to capital. Income Paid to you twice yearly. Up to 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'Artemis Income ISA' });">Artemis Income ISAyes
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One of the leading UK Equity Income Funds. The Fund managers hunt out companies with strong free cash flow and solid balance sheets. Income is paid to you twice yearly. 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'Jupiter Corporate Bond' });">Jupiter Corporate Bond Fund ISAyes
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The Jupiter Corporate Bond aims to achieve a high level of income with the opportunity for capital growth, through mainly investing in fixed interest securities. Income is paid to you twice yearly. 87.5% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'invesco perpetual high income' });">Invesco Perpetual High Income Fund ISAyes
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One of the UK's most popular income fund ISAs the Invesco Perpetual High Income has delivered consistently good long term returns through a variety of market conditions. Income is paid to you twice yearly. Up to a 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'MandG Corporate Bond' });">M&G Corporate Bond ISAyes
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The M&G Corporate Bond Fund is a conservative ‘blue chip’ sterling fund that aims to produce a higher return than UK government bonds. Income is Paid to you Quarterly. 100% Discount off the Standard Initial Fund Charge.
', eventAction: 'Account', eventLabel: 'Jupiter Merlin Income' });">Jupiter Merlin Income Portfolioyes
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The Jupiter Merlin Income Portfolio fund aims to achieve a high and rising income with some potential for capital growth. Income Distributions are made to you quarterly. 95% Discount off the Standard Initial Fund Charge.
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†† Income payments are dependent upon the FTSE 100 Index.

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