Green tax breaks from Tories

Jill Insley
The Observer, Sunday 11 January 2009

Investors who put money into "green" equity-based funds and shares could get a bigger individual savings account (Isa) allowance under a Conservative government.
Shadow chancellor George Osborne has asked the former chief executive of Norwich Union, Patrick Snowball, to explore the idea of boosting investment in environmentally sound companies by extending the £7,200 tax-efficient Isa allowance for green equity investments only. Investments into cash Isas and other types of equity-based Isa would not benefit from the increased allowance.
Osborne said: "Patrick Snowball is considering how much the allowance should be extended by - it may be £1,000 or £2,000 higher. This would help a large number of people who want to do something for the environment."
The Conservative party last week emphasised its opposition to encouraging spending to help Britain out of recession, calling for tax cuts to encourage cash savings. Announcing a new savings policy on Monday, David Cameron said the 20% cash savings tax should be scrapped for basic-rate taxpayers. This would reduce the tax bill for any saver with earnings or pension income below the higher rate threshold of £43,875, but those who are reliant on savings income would benefit most, up to a maximum of £7,200.
Osborne said: "The plight of savers and pensioners has not featured very much until now, but we reckon savers are £27bn worse off as a result of the cuts to the base rate from 5.5% to 1.5%."