Pre-Budget: ISA regime extended, CTFs get more money

Government will look to consultations on proposals to stay its hand on reducing maximum ISA invesments.

This means maxiumum allowable cash ISAs will remain at £3,000 until 2009, Gordon Brown suggests.

Additionally, the government will commit to doubling the amount of money it puts into CTF accounts when children reach the age of 7.

This would see those qualified to receive £500 when opening a CTF obtaining an additional £500, and those qualified for £250 getting another £250 at age 7.

Brown has also pledge to halve the number of adults without bank accounts, as this currently causes problems such as acting as a barrier to joining the labour force.

The government will work with the banking industry to put in place a strategy for ensuring more adults have bank accounts and subsequent retail banking services.

A further note in chapter 3 of the pre-Budget report reveals the government is still looking at developing Property Investment Funds(PIFs), otherwise seen as Real Estate Investment Trusts (REITs).

"The Government continues to believe that tax reform in this area has the potential to improve the efficiency of the property market. While the government will not legislate in 2005, it will report back with a discussion paper by Budget 2005, for further dialogue with industry representatives. A summry of responses to the summer (2004) consultation will be published at the same time," says the report.