Nationwide Proposes ISA and Stamp Duty Reform

Nationwide, one of the largest UK building societies, has called upon Chancellor Alistair Darling to review the ISA policies and reform the stamp duty tax. The Building society is interested in encouraging the savings habit among its customers as well as in enabling people to get on the property ladder. Therefore, Nationwide hopes that Chancellor will take steps to support savers and first-time buyers. Nationwide has sent a letter to Chancellor Darling, which lists the following changes to current policies: -    Changes to ISAs as recent Nationwide survey revealed that 70% of people do not know how to make use of their ISA allowances. Nationwide wishes ISAs become less complicated and more flexible so that more people can start saving, especially given that current economic environment encourages people to have savings to fall back on. Nationwide proposes the following changes to ISA: increasing the min. ISA subscription to £8,735 and then have ISA rate linked to annual inflation so that it maintains its true value; allowing savers to withdraw and replenish their ISAs; increasing ISA’s cash limit; creating an annual limit. -    Review of stamp duty should involve the following steps, according to Nationwide: increasing the nil rate thresholds up to £250,000; linking the stamp duty tax to inflation. Nationwide’s chief executive, Graham Beale, said the society hopes the government will loom into the proposed changes to make things easier and more worthwhile for savers and homeowners.