Consolidation prize

By THIS IS MONEY
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With the recent loss of 10% tax credits on Peps and Isas, why will the government not allow consolidation of those vehicles? Most Fund managers charge a maximum charge, so allowing combination would save investors from paying two sets of charges, particularly with the loss of the tax credit. NB, Cheltenham.

Chartwell Investment's Ryan HUghes replies: You are quite right in saying that it would make things a lot easier for everyone if investors were allowed to amalgamate PEPs and ISAs into one account.

However, there are still a couple of reasons why I think this is not happening. The first of these is that bank interest earned on PEPs and on cash held in stocks & shares ISAs is taxed differently, therefore creating the need for it to be identified separately.

The second reason is more to do with the industry itself and the fact that computer systems would need to be totally redeveloped to facilitate this, and I just can't see the industry wanting to foot the bill for this move

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