Shaughnessy criticises tax credit omission

Fidelity retail MD believes Chancellor was wrong not to reinstate dividend tax credit within Isas as part of Budget

The Government's move to raise Isa limits without reinstating the dividend tax credit will not bring any immediate relief for savers, Fidelity retail managing director Gary Shaughnessy says. In last week's budget Chancellor Alistair Darling outlined plans to increase Isa limits to £10,200 this year for the over 50s and from next year for all other savers. While the move is expected to encourage higher savings levels, Fidelity had led an industry campaign for a repeal of the Treasury's 2004 decision to stop savers receiving tax credit for dividends paid on shares in Isas - an issue not a...