Tax free cash ISA allowance to be cut

[diy_fun_uk]

Rightly or wrongly, someone like me old ma is content to put £x each year into her cash ISA. I've spoken to her before about things like S&S ISAs however as she says 'at my age I'll not bother.'

Seems like the £20k pa limit is set to be reduced. Investment groups like IG want it scrapped altogether.

Major blow for savers as Reeves set to cut tax-free cash Isa allowance

Chancellor Rachel Reeves is expected to cave into lobbying by City firms in two weeks' time and announce a cut to the allowance in her Mansion House speech on July 15.

www.dailymail.co.uk

 

[Scally-Ho]

Yes, now we have the real Nasty Party with a tight grip on the fiscal outlook

 

[Notch7]

Back in May I thought she said the £20k limit wouldn’t be changed.

Why is IG calling for it to be scrapped?

 

[Notch7]

Yes, now we have the real Nasty Party with a tight grip on the fiscal outlook

No what we have is a nasty economy with destroyed public services.

Do you think any other party in power would be doing anything diffferent?






Oh and a right wing media that kept quiet whilst Tories were doing similar things but are now screaming.

The Daily Mail was silent when Tories put £80b of tax rises in place in 2019 onwards.

 

[securespark]

I think I left my brain on the pillow this morning.

IG?

 

[denso13]

Why is IG calling for it to be scrapped?

Scrap the cash Isa to 'save our stock market,' says IG

IG Group said cash Isas are 'hindering rather than helping' millions of Britons to accumulate wealth as it launched a 'Save Our Stock Market' campaign.

www.thisismoney.co.uk

 

[diy_fun_uk]

Back in May I thought she said the £20k limit wouldn’t be changed.

Why is IG calling for it to be scrapped?

Scrap the cash Isa to 'save our stock market,' says IG

IG Group said cash Isas are 'hindering rather than helping' millions of Britons to accumulate wealth as it launched a 'Save Our Stock Market' campaign.

www.thisismoney.co.uk

 

[gas112]

Labour trying to look after their rich donors by sh1tting on the small person yet again

 

[MNW67]

Labour trying to look after their rich donors by sh1tting on the small person yet again

It is a very strange decision. I can't see them going through with it. Lots of people just want a basic way of saving without dabbling in stocks and shares. Tory chancellors repeatedly rejected this idea, which was pushed by some of their own backbenchers.

 

[diy_fun_uk]

It is a very strange decision. I can't see them going through with it. Lots of people just want a basic way of saving without dabbling in stocks and shares. Tory chancellors repeatedly rejected this idea, which was pushed by some of their own backbenchers.

Wouldn't surprise me if they do go through with it, or at least try to. Will just add to the poor decisions they're making, opening the door that bit more to a possible Reform government in 2029.

 

[Justin Passing]

Stupidity reigns.
Cash ISA about 5% max
S&S ISA, 8-10% pi$$ easy.

If their suggested change is made, I expect there would pop up an extra layer of services provided by intitutions, maybe bldg socs, giving straightforward access to the stock market, by proxy.. There could be products with "expected" returns" of say the 10%. That would vary of course.
I can see the sense in removing the 0.5% UK share tax https://www.thisismoney.co.uk/money...llor-urged-axe-stamp-duty-British-shares.html
for those accounts, to encourage investing in shares in UK companies.

As things are, it would be likely the product would use corporate bonds ( international much US) or something like small-cap US shares.
NOT UK company shares.


As before - a bond thing in orange and US small co shares. The shares one which goes down would be fine, because the holding institution would "short" it when it was going down. Bots do it, so it would wind up doing better than the bond thing.
If you DIY'd over this last 12 months you'd be around 30% up, so an institution would be making a big profit at 10% payout.
The orange one hasn't dipped like that in years - Trump.

This could cause a BIG problem for bldg socs. They would no longer be able to borrow so much money from their account holders at 5%, so mortgages would get squeezed.
Pension funds too. They currently give you terrible returns. You might easily find you currently have 6-7 figures in a pot giving you 2% because you're old. It's fraud! They don't even give you money-market rates., which are about the same as bld socg rates.

 

[noseall]

Pension funds too.

Tax free?

 

[Notch7]

Labour trying to look after their rich donors by sh1tting on the small person yet again

looking after rich donors by sh1tting on the small person…….a prefect description for Trump, Farage, Tories

The people you support.

 

[foxhole]

How can you be one of the poor people if you have £20k to put away each year?

 

[diy_fun_uk]

Stupidity reigns.
Cash ISA about 5% max
S&S ISA, 8-10% pi$$ easy.

I'd assert it should be someone's choice to either use a Cash ISA or S&S, with no reduction in the annual limit for the former. It's nudging people towards the stock market, which some aren't interested in.