The Building Societies Association (BSA) has urged the Government to rethink rules surrounding ISAs in a bid to reduce confusion amongst the UK's hard-pressed savers.
In its Budget submission to the Treasury, the BSA called for an equal threshold to be applied for cash ISAs and stocks and shares ISAs and for rules regarding the transferring of funds from stocks and shares ISAs to cash ISAs to be simplified.
The BSA expressed its frustration at the Government's failure to deliver assistance to millions of struggling savers, hit hard by poor rates of return and the effects of tax and inflation, claiming that measures such as the introduction of Junior ISAs, were simply not enough.
A review of the ISA rules would, in itself, provide "radical support" to many savers who are often left confused at what their options are, the association believes. Adrian Coles, director-general of the BSA, said: "We now need Government to step up and do something tangible to help savers whose rates have been decimated by four years of an ultra low bank rate.
"A temporary moratorium on the taxation of savings interest would benefit millions whose self-help ethic is being eroded," he pointed out.
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