Building Societies Association
Feature
Level playing field on ISA transfers is needed
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Contact: Rachel Le Brocq Date: 31 Oct 2008 |
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Research conducted on behalf of the BSA by YouGov shows that 79% of stocks and shares ISA holders would consider transferring their ISA to a cash ISA if they were allowed to. Currently, disparity in the ISA regulations means this is not possible - only transfers from cash to stocks and shares ISAs are permitted.
The two most common reasons to switch from stocks and shares to cash ISAs are to earn a better return and to change the level of risk savings are exposed to. These reasons clearly reflect current conditions in stock markets, with stocks & shares ISA holders attracted by the better returns currently offered by cash ISAs, as well as the lower risk.
Commenting on the findings, Adrian Coles, Director-General of the BSA, said: “The current market conditions make it even more important that the inequality in ISA transfer rules are addressed. The current rules that allow only transfers from cash to stocks and shares ISAs – but not the other way round - meaning those savers with stock and shares ISAs who want to reduce the risk to their savings or earn a better return from cash, can’t do so without losing their tax exemption. We believe the Government should introduce a level playing field on transfers and we will be urging that they announce this change in the forthcoming Pre-Budget Report.”
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Total sample size was 1,990 adults. Fieldwork was undertaken between 26th - 29th September 2008. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
