Paul Latham

This small tweak would make Isas less complex

Recent years have seen growing calls to simplify the Isa market. New research from Octopus Investments* shows why this idea merits serious consideration.

Despite the undeniable success of Isas over the past 20 years, there is strong evidence that people find the Isa market confusing. As a result, many are not using Isas to their full potential.

It’s time to rewrite Isa rules on unquoted shares

The range of assets that you can hold in an Isa has grown steadily over the past few years. Yet there is an obvious gap. At present, investors can’t use Isa funds to buy shares in unquoted companies.

This should change. Allowing Isas to contain unquoted shares would mean that investors could buy into companies at an earlier stage. This would create more flexibility for building diversified portfolios.