AIM stocks can be held in Isas from 2013
Isa investors may be permitted to invest in smaller company stocks such as those listed on the AIM index from next year.
In the Autumn Statement today chancellor George Osborne raised the Isa investment limit to £11,250 from April 2013.
Mr Osborne said: “We will consult on allowing investment in small and medium-sized enterprise equity markets like AIM to be held directly in stocks and shares Isas, to encourage investment in growing businesses.”
Currently investors opening stocks and shares Isas can invest up to £10,680 directly in stocks, or into open-ended funds. However, only some smaller company stocks qualify for Isa investment.
The chancellor’s announcement is designed to encourage saving but also to boost investment in smaller companies, which have been struggling to get bank funding since the onset of the financial crisis.