Items most likely to be on UK investors’ budget day wish list

Interactive Brokers  CEO Gerald Perez said individuals are being asked to take more responsibility for securing their own financial futures:

“Individual trading and investing can be a significant step on that path,” he said, “But meaningful democratisation requires more than the technological access that Interactive Brokers can provide. We welcome any measures that support individual trading and investing – by increasing relevant tax allowances, or increasing the instruments people can trade in tax-free vehicles.”

In particular, Mr Perez thinks, it would help if the budget considered to:

• Increase the contributions investors can make into ISAs in a single tax year. Gerald Perez said: “Increasing the ISA allowance for the first time since 2017 could enable investors to recoup some of the wealth they have lost to recent high inflation.”
• Create extra ISA allowance for the proposed British ISA. Gerald Perez said: “We support the proposed British ISA and would also be in favour of extra ISA allowances to help UK residents reach their financial goals.” 
• Offer a one-off additional tax-free allowance for people opening ISAs or SIPPs for the first time, including adults investing in junior ISAs. Gerald Perez said, “A one-off ‘new pot’ allowance might prompt people to take their first steps into investing, and spur parents and guardians into investing for the next generation.”
• Confirm that fractional shares can be held in an ISA. Gerald Perez said: “The new generation doesn’t have a lot of disposable income. Consequently, democratising access to trading and investment means providing access to shares in smaller ‘parcels’.”