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House builder firm Barratt launches company ISA

The house builder firm Barratt has launched its own company ISA (individual saving account) for employees. The Company ISA, provided by insurer Legal & General, is thought to be one of the first workplace benefits of its kind in the UK.

Employees can invest in the company’s ISA with deductions made by the payroll department and employees will enjoy the same tax efficiency arrangements as with a personal ISA and the cost of administration charges will be lower than with a commercial ISA.

The Barratt ISA is thought to be one of the first workplace benefits of its kind in the UK.

Employees will be able to make substantial savings on investment returns because the ISA is not subject to income tax or capital gains tax. The ISA will be available from August; it will have an annual allowance of £10,200 for the 2010-2011 tax year.

Chris Noon, partner at Hymans Robertson, which advises Barratt on its benefits strategy said: ‘corporate ISAs offer employees the convenience of regular saving through payroll along with other benefits of lower fees through company-negotiated rates and improved governance.’

He added: ‘Recent changes to high earners pension taxation have made such products more attractive, as there could be an advantage from employees being able to allocate employer pension funding an ISA rather than to their pension scheme. However, there are equally relevant for any employees with short term saving needs such as those saving for a house deposit.’

01/07/2010