LENDING Works has given its backing to the creation of an ISA wrapper that encompasses all types of tax-free savings in one place.
The peer-to-peer lender, which launched its Innovative Finance ISA (IFISA) in February 2017, has warned that politicians mustn’t forget the “simplicity and user-friendliness” that ISAs were initially set up for. It said that the creation of several different tax-free products such as the IFISA created added complexity.
A blog on the Lending Works website suggests proposals by the Association of Accounting Technicians for an Everything ISA provided “food for thought”.
Read more: IFISA special report
An Everything ISA would bring cash, stocks and shares, junior ISAs and the IFISA all under one umbrella that can be accessed through one portal rather than having to open several different savings products.
“We all know more about the status quo and standing of ISAs after the conclusion of the 2017-18 tax year, as figures and data are released,” Lending Works said.
“But recent history suggests that we shouldn’t be optimistic, and despite the dynamism that consumer-friendly newcomers such as the IFISA have brought to the table, continued bolt-ons elsewhere within the framework run the risk of further increasing the level of complexity for the average consumer.
“If not a silver bullet in itself, the idea of the Everything ISA should at least ensure our politicians remember what made ISAs so popular in the first place: their simplicity and user-friendliness.”
There are currently 76 platforms with the correct regulatory permissions to offer IFISAs, with around 30 IFISAs on the market right now.