"The change to the rate of Capital Gains Tax (CGT) will reduce the value of equity ISAs to investors.  Depending on growth rates, the benefit might be worth £72 per year for a basic rate taxpayer, or less than £105 for a higher rate taxpayer.  These figures are correct if the annual investment return is 5%, split equally between income and growth.  Prior to the changes planned for next year, these figures would be over £76 and £144 respectively.

"If the total annual return is 10%, with 3% of that being income, the annual tax saving for a basic rate taxpayer is less than £135.  For a higher rate taxpayer, the annual saving is approximately £177.  At present, this would be worth almost £155, or £288 for a higher rate taxpayer.

"Whilst a tax exempt savings plan is attractive in principle, the real saving in tax is falling and continues to be of most benefit to higher rate taxpayers."

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities.  Neither DTT nor any of its member firms has any liability for each other’s omissions.  Services are provided by member firms or their subsidiaries and not by DTT.  Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.  The information contained in this press release is correct at the time of going to press.