HMRC has confirmed that the building of the regulatory framework continues despite the political instability following Brexit.
HMRC confirmed they are on track for the birth of the newest ISA baby, LISA (lifetime ISA), for April 2017 and called for continuing input to its currently open consultation through the summer.
Current insight suggests that LISA will be used as an additional pension saving vehicle alongside traditional pensions rather that competing with them and instead of being used to save for a first home.
However, often the public don't do what is expected of them and so it will be interesting to look back in 2017/18 to see what practices do emerge once this product is launched.
“I think the fact that we’ve seen a lot of excitement and appetite and interest from the industry and also from consumers about this product means that regardless of what is going on in the political space and the events of last week, the business of government is absolutely as usual, and this is something we are going to launch in April next year.”Mr Cottis said feedback from industry to HMRC showed there was “definitely going to be a market” for the Lifetime Isa. He said a common piece of feedback from potential providers was that the government’s 25 per cent contribution should be paid in monthly rather than annually. The consultation period would continue over the summer, and both civil servants insisted the Lifetime Isa was intended to compliment, not replace, pensions.