Heard on the Street: Can British Savers Close the Gap for U.K. Stocks?
British savers probably aren’t to blame for the low valuation of U.K. stocks. Today, British Treasury chief Jeremy Hunt announced the launch, after a period of consultation, of a new type of Individual Savings Account, or ISA, which will allow households to save an additional £5,000 a year tax free, equivalent to $6,372, as long as the money goes into U.K. financial markets. ISAs are tax-efficient investment products a bit like American Roth individual retirement accounts, but with the ability to withdraw money at any time.
