Partner Article

ISA changes could benefit SME equity markets

The Government have set out plans to expand the range of stocks and shares eligible to be held in an ISA.

Economic Secretary to the Treasury, Sajid Javid, published a proposal to allow company shares traded on a wider range of equity markets to be eligible for a stocks and shares ISA.

The change will encompass markets with a component of smaller company shares, and the Treasury say it could be an important capital injection for SME equity markets.

Mr Javid said: “Access to finance for smaller growing companies is key to promoting private investment and delivering a sustainable economic recovery.

“The Government wants to ensure that businesses, particularly small businesses, are able to access finance and support, and this change has the potential to help provide that access while offering consumers greater choice in what they can hold in their ISA.”

Malcolm Small, senior pensions policy adviser at the Institute of Directors, said: “Relaxing the ISA rules to encourage more investment in smaller businesses is a welcome move. Any new finance that can be made accessible to growing companies is a good thing. Broadening the range of shares which can be held in an ISA will also increase choice for savers.”

This was posted in Bdaily's Members' News section by Tom Keighley .