Commentary: Spring Budget 2024

William Marshall, Chief Investment Officer, comments on today’s Spring Budget.

06 Mar 2024

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Commenting on today’s Spring Budget, William Marshall, Chief Investment Officer at Hymans Robertson Investment Services says:

“On the government’s introduction of a new UK ISA, any additional tax breaks that incentivises investment is a good thing. However, there is a risk that investors will allocate a larger than optimal exposure to UK assets. Portfolios should be diversified globally to help. Investors will now need to weigh up whether the additional tax incentives compensate for the reduced regional diversification.

It is also yet to be determined how the government will define UK assets eligible for inclusion in a UK ISA. For example, there are plenty of foreign companies that are listed on the London Stock Exchange and therefore are included in the FTSE 100 index. Conversely, Arm Holdings, a British semiconductor firm, is listed on the Nasdaq in the US so may be ineligible, even though this is exactly the kind of company that the Chancellor would like to receive investment.”