Individual Savings Accounts: AIM Shares

Lord Lee of Trafford Excerpts

Tuesday 31st January 2012 Lords Chamber

[Lord Sassoon]

My Lords, I am very happy to confirm that ISAs have indeed been a very successful product. As I said, 45 per cent of the population over the age of 16 hold them. On the latest numbers that I have seen, the total value of ISAs is £350 billion. It was a successful initiative of the previous Government. It is the main savings product of a large part of the population and we should not do anything to undermine the value of that brand.

[Lord Lee of Trafford]

Can my noble friend name any organisation, any professional body or any serious investment commentator that supports the Government’s policy?

[Lord Sassoon]

My Lords, it depends what question they are asked and what the considerations are. I can see that lots of people have an interest in wanting AIM shares to be eligible for ISAs. However, I suspect that if they were also asked whether they wished to see AIM shares lose some of the tax benefits that they have in the way of eligibility for enterprise investment schemes and venture capital trusts and particularly the inheritance tax advantage that comes with their status as business property relief, they might not be so keen on this change.