On 13 March the Government published a consultation on including shares traded on small and medium-sized enterprise equity markets within ISA qualifying investments. This consultation sought views on the Government’s proposed method of implementing this policy.

Following the consultation, the Government today publish their response. The majority of respondents to the consultation broadly agreed with the Government’s proposal, although some suggested alternative approaches. The Government have carefully considered all the responses. On balance, they believe that their proposed approach remains the most appropriate: their reasons are set out in the summary of responses.

The Government therefore intend to introduce the necessary legislation before summer recess to amend the ISA regulations in line with the consultation proposal. They will be amended to expand the range of ISA qualifying investments to include company shares admitted to trading on a recognised stock exchange in the European economic area. This will meet the main objective of allowing company shares on SME equity markets into the scope of ISA qualifying investments.

I am placing copies of the summary of responses in the Libraries of both Houses.