Question to the HM Treasury:

To ask His Majesty's Government how tax relief through independent savings accounts allowing investment overseas contributes to (1) the UK economy, or (2) the growth agenda.

The Government is committed to incentivising greater saving and investment, to help people save for their future goals and build greater financial resilience. The Government offers a generous tax treatment on Individual Savings Accounts (ISAs) to support people of all incomes and at all stages of life to save.

Individuals can currently save or invest up to £20,000 per year in an ISA, with all income and gains received in the wrapper received tax-free.

The Financial Services Growth & Competitiveness Strategy Call for Evidence, which closed on 12 December, asked how increasing retail participation in capital markets could support long-term sustainable growth within the sector and the wider economy. The call for evidence welcomed further evidence on how to improve consumer engagement with investing, and the Government is considering the feedback provided.

The Government is looking at options for reforms to ISAs that get the balance right between cash and equities to earn better returns for savers, boost the culture of retail investment, and support the growth mission.

The Government keeps all aspects of tax and savings policy under review.