British Isa will be created ‘to encourage investment in UK firms’, Hunt confirms

Critics say scheme to let consumers plough in up to £5,000 tax-free is only likely to benefit a small group of wealthier investors

Jeremy Hunt has confirmed that the government will create a tax-free British Isa as part of efforts to encourage more investment in UK companies and offset anxiety over floundering interest in London’s stock market.

The chancellor’s heavily trailed scheme to create a British Isa – or individual savings account – could allow consumers to plough up to £5,000 into UK businesses, including stocks and debt, without having to pay capital gains tax on any money made on those investments.