Around half (49%) of independent financial advisers (IFAs) believe a reduction or removal of the current ISA allowance would prompt clients to move more money into investments, a new Opinium study has shown.

Opinium published its research, based on an online survey of 200 IFAs, ahead of savers rushing to meet this weekend’s tax year-end deadline.

The annual ISA allowance currently stands at £20,000 but the Government is rumoured to be considering cuts to this, in a bid to shift savers from cash into stock market-based investments.

Opinium’s latest findings, however, revealed that 17% of IFAs think their clients would be less likely to move money into investments if the rumours came true.

When asked what would encourage their clients to invest more into a stocks and shares ISA, 58% of IFAs said that increasing the annual ISA allowance beyond £20,000 would work, while 29% thought removing the tax benefits of cash ISAs would do so.

A quarter (26%) think more access to advice or education is needed, while 18% think stocks and shares ISAs need to be simplified, and 16% felt that removing stamp duty on UK shares would incentivise people to start or invest more.

Global head of financial services research at Opinium, Alexa Nightingale, commented: “The mooted shake-up of cash ISAs was not announced in the recent Spring Statement, but the Chancellor is said to still be considering this move, in order to boost investing among UK savers.

“With almost half of IFAs agreeing that such a policy change could boost investing, all eyes will be on the Autumn Budget to see if this change comes to fruition.”

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