Britain’s shock decision to leave the European Union will have no impact on the government’s plan to introduce the Lifetime Isa next April, a senior policy adviser at HM Customs & Revenue has said.
Speaking at Tisa’s Lifetime Isa Conference in London on Monday (27 June), Paul Cottis reassured the industry that Brexit would not derail the new Isa, saying the regulatory framework was on track to be announced in “early autumn”.
While he said HMRC could not release policy details yet, he said it was business as usual.
“Whatever happened last week doesn’t matter, we’re going on, we move on. There’ll be no change to the policy,” he said.
Mr Cottis shared the stage with HM Treasury policy adviser Rosie Neilson.
When asked what would happen to the Lifetime Isa if, as a result of the current political uncertainty, a Labour government was elected before April, she said she was not “privy to the internal opinions of different politicians in different parties”.
But she went on: “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.
This, they said, would make it more attractive to consumers.
He said the consultation period would continue over the summer, and urged the industry to get in touch directly with their feedback and suggestions.
Both civil servants insisted the Lifetime Isa was intended to compliment, not replace, pensions.
Also speaking at the conference was Tom MacPhail, head of retirement policy at Hargreaves Lansdown.
He said research among Hargreaves Lansdown clients suggested people intended to use the Lifetime Isa alongside pensions.
The research found most users would invest in stocks and shares rather than cash, and most would use it as a retirement savings vehicle rather than a vehicle to save for their first home.
james.fernyhough@ft.com
