Building Societies Association
Budget round-up
The Chancellor’s 2009 Budget brought a small cheer from savers. The increase in the annual investment limit for ISAs to £10,200, up to £5,100 of which can be saved in cash, was good news, although it was disappointing that the under 50s will not enjoy the benefit of this until April 2010.
It was also disappointing that the regulations preventing transfers from stocks and shares ISAs to cash ISAs were not changed. The current one-way-only transfer from cash to stocks and shares ISAs means consumers cannot rectify errors of bad judgment or advice and still retain their tax exemption.
Encouraging mutuals
The Government’s commitment to support alternative ownership and business models to provide financial services was welcomed. The BSA looks forward to working with the Government on their forthcoming proposals to strengthen the mutual sector.
Stamp Duty
The extension of the Stamp Duty holiday for properties costing less than £175,000 could benefit a number of first-time buyers, but should not be expected to boost the housing market substantially.
The BSA urges the Government to take this a step further by researching how the Stamp Duty system could be reformed to reduce the distortions from the current “slab” structure of the tax that results in the bunching of transactions at prices just below the thresholds for different rates.
