Multiple pundits believe that there should be less ISA variations.

“Less variations. Once allowance, remove esoteric/specialist definitions,” one opined.

Another said a total limit contribution split however clients wish to allocate and a merger of the Junior ISA, Help to Buy, and Lifetime ISA into a consolidated holding with aligned rules.

One industry pundit said: “£10,000 into a cash account and £10,000 into UK companies unit trust.”

One industry respondent said: “Annual allowance no matter where money is placed – no differential or with a junior ISA, same limits for all.”

Another suggested a junior ISA up to age 18 and a flexi ISA thereafter, but without the option of reinvestment during the tax year.

A respondent who believes there should just be a stocks and shares ISA and a cash ISA said to also allow flexibility with number of accounts per tax year, and increase the subscription to £25,000 as the “level hasn’t changed for too long now”.

Another called for one adult ISA with a certain max amount that can be either cash or riskier investment and one Junior ISA with the same structure.

“Increase allowance to £25,000 get rid of all smaller ISAs,” one pundit said.

One respondent highlighted that we need to incentivise UK companies to achieve growth.

One respondent said there needs to be “fewer HMRC rules, regulations and small print”.

Sharin a similar view, another suggested: “One set of rules and qualifications for all aspects of ISA’s not different rules and qualifications for different components.”

Others called for a one size fits all approach, with one pundit suggested that there be a single ISA with a single limit.

“Do away with help to buy gimmicks that just push up property prices,” they said.

A couple of pundits suggested that there should only be a stocks & shares ISA, cash ISA, and a JISA.

“Free of all tax including inheritance tax. No bonus’, fixed terms, exit penalties etc,” one respondent opined.

No need for change?

On the other hand, a number of respondents do not believe the ISA system needs changing.

“It is simplified,” one said. “No change. Just stick £20,000 into it where possible and that’s job done,” added another.

Sharing the same view, another industry respondent called for it to remain the same and said: “as per pensions stop meddling with the rules!”

Seeing both sides, one pundit said that they are quite happy with the system as it is, however “being able to cascade ISAs down the family, not just to a spouse (albeit subject to inheritance tax unless alternative investment management invested) would be nice to see, especially if negative changes are made to pensions rules on death”.

One firm that is passionate about a simplified ISA system is AJ Bell, as it recently reiterated its call for ISA simplification and urges for pension tax stability in the upcoming Autumn Budget.