You can read the full document here: https://www.aat.org.uk/prod/s3fs-public/assets/AAT-ISA-Working-Group-Time-change-review-ISA-regime.pdf
AJ Bell and others have long argued that the growing complexity of the UK’s ISA system risk creating unnecessary confusion for savers. In fact, AJ Bell has previously called for the features of the existing ISA products to be rolled into a single, simple ‘Master ISA’.
Tom Selby, senior analyst at AJ Bell, comments: “The success of ISAs was built not only on the tax benefits available but the simplicity of the rules. However, politicians have gradually chipped away at this through the layering of unnecessary complexity, forcing savers to wade through a quagmire of allowances and rules to find the product they want. Indeed, it is possible a ‘Care ISA’ will be added to mix as policymakers scrabble for sticking plaster solutions to the long-term care crisis.
“Complexity is the enemy of good savings policy and the Government should focus its attention on making the rules governing both pensions and ISA as straightforward as possible.
“The UK’s ISA regime is ripe for simplification, and while there may be different views on how this should be achieved there is no doubt the goal of making the system easier to understand and engage with is the right one. We believe there is a strong argument for incorporating the features of all the main ISA products – including Cash, Stocks and Shares, Junior, Innovative Finance, Help-to-Buy and Lifetime - in a single product.
“On the Lifetime ISA, we agree the exit penalty and age restrictions are major drawbacks, but would prefer the Government to remove those inhibitors rather than scrapping something which has proven extremely popular with investors.”