UK ISA Could Pump £4 Billion a Year Into Ailing Stock Market
- Peel Hunt estimates 1 million people will apply for UK ISA
- Consultation period for the new product ends next month
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The government’s proposal for a tax-free savings account for investing in UK companies could pump an additional £4 billion ($5 billion) a year into the stock market, helping to counter record outflows, according to an analysis by Peel Hunt Ltd.
The broker estimates that 1 million people would apply for the so-called UK ISA, a product proposed by Chancellor of the Exchequer Jeremy Hunt in March. Assuming they invest the full £5,000 allowed annually, a potential £40 billion could be channeled into UK stocks over 10 years after adjusting for portfolio reweightings, according to the report.