he additional £5,000 Isa allowance for Isas invested in British businesses is a “drop in the ocean” even for wealthy people and inconsequential for most investors, who do not use all of their allowance in the first place.

Stephanie Court, tax director in the private client team at RSM UK, told FT Adviser the incentive to invest more in British business was a nice touch but would not make a big difference even for the market it is targeting.

She said: “It was a nice patriotic touch [but] not many savers actually utilise the £20,000 annual allowance that’s available to them at the moment. This isn’t a simplification either that many were calling for.

“£5,000 probably is a drop in the ocean both for those individuals [who use all of their allowance] and the financial markets that the British Isa is targeted at.”

She also said the failure to tackle inheritance tax in any meaningful way was a “missed opportunity”.

“It might be a nice money earner for the exchequer, but as the most hated tax it actually affects a tiny percentage of estates in the UK,” she said.

The chancellor did announce the scrapping of furnished holiday lettings relief however, and this could impact how much landlords can contribute to their pensions, Court explained. This is because FHL profits are considered relevant earnings for pension purposes.

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