The fairest way to resolve this would be to set an UPPER limit on how much cash you can invest in ISAs - not per year but over your life time.
-
Looking for a smarter way to manage your heating this winter? We’ve been testing the new Aqara Radiator Thermostat W600 to see how quiet, accurate and easy it is to use around the home. Click here read our review.
Tax free cash ISA allowance to be cut
- Thread starter diy_fun_uk
- Start date
- Status
- Joined
- 22 Aug 2006
- Messages
- 7,050
- Reaction score
- 1,171
- Country
More than say 10% in a day? Certainly, I've shown that many times, but it's not every day, I assume
? I daresay some do, but not me.
- Joined
- 22 Aug 2006
- Messages
- 7,050
- Reaction score
- 1,171
- Country
Not sure what that would achieve. The company IG is making the point that investments into industry would be good. But as suggested, without additional rules most would be in foreign industry.
There were tessas then Isas from before 2000 so those who maxed out and grew the capital have over £1m in isas.
There are extensive HMG figures but a more useful description here:
https://www.ajbell.co.uk/group/news/isas-unpacked-who-holds-them-and-how-much-do-they-have
And from Moneyweek: published22 October 2024
"The number of ISA millionaires has more than tripled in three years, according to a Freedom of Information request to HMRC.
In 2022/23, there were 3,180 ISA millionaires. This compares to 1,030 three years ago, and just 570 eight years ago.
Analysis by the investment platform InvestEngine reveals that there are also 7,000 people in the UK with ISAs worth between £750,000 and £1 million, while 30,000 have between £500,000 and £750,000 in their ISAs."
So that'll be 5k or so people now. Or 10k or 40k if some used leveraged investments.
To point out the obvious, with a return of only 10% from a S&S ISA., an invididual gets £100kpa tax free.
If you'd stuck only £100k of it in 3x Rolls Royce you'd have earned £200k on that (=300k), since Jan 25.
RR is of course a German company, owned by BMW.
If it continues at that rate which it might if there are big defence and SMR contracts, That small part (100k) of the isa will have become £1m. Tax free.
For diversification you might as I do use 3xEuropean Banks as well, and that £100k will be (if it carries in, ditto) £625k in the year.
ANother obvious diversification is US tech stocks, They weren't worth having intil April but 5qqq has doubled since then.
If you want to/can be more agile as well you'd use 3Nvidia or 3Palentir, which at one point was up 4500%.
Then there's 3con and 3mst which have multiplied as they're bitcoin related. You don't get all the rises, but it's still a multiple..
Eyes on Korea. That dooubled in a couple of months but I only took a hit because we don't know what Trumps tariffs will do in 3 days time. After that it could take off again.
So you can earn quite a lot tax free in isas. Too much, IMHO, especially when it's all abroad somewhere.
On US stocks you'd have been hit with the exchange shift of about -13%, but the leveraged etfs are in £.
An easy one has been to short the $US, but you can't do much leverage in an isa so that's only 17% since Jan.
Outside an ISA that's (14% x 30 = ) 420%, less tax, unless you use "SB" then no tax. That's a contrivance to not pay tax, called Spread Betting.. Theoretically they COULD tax it but haven't so far.
I'm deffo no claiming to have done optimally, not many do. But none of these moves has required clairvoyance. Everything needs a stop-loss. For example if Huawei announces an Nvidia beating chip, that stock will collapse.
It'll be interesting to see what happens to Tesla now Elon has opened his gob again.
There IS a minus 3xTsla
. If you put £1 in that and it halves in value, you have £1 x -3x(-50%) = £2.50 (I think - they're odd).
Last edited:
- Joined
- 31 May 2016
- Messages
- 24,768
- Reaction score
- 5,336
- Country
Building societies step up protest against Reeves's cash ISA reforms
A draft letter from the Building Societies Association, seen by Sky News, warns the chancellor that slashing the cash ISA limit risks pushing up borrowing costs for homeowners and businesses.
It's not clear what Reeves is proposing. But if she cuts the cash limit and forces people to buy stocks then it will be easy to replicate the same investment strategy with a bond. The only issue is, the average person will struggle to figure this out and will probably just not save the money, or if they do they will prop up over priced funds who will claim to do it for you.
Seems like another tax strategy that will back fire.
No it isn't
It's a company that mostly makes aero engines. You can buy shares in it if you want. The price has recently rocketed in the hope of military orders.
Rolls-Royce Holdings PLC, RR.:LSE summary - FT.com
Latest Rolls-Royce Holdings PLC (RR.:LSE) share price with interactive charts, historical prices, comparative analysis, forecasts, business profile and more.
It no longer owns the car company, which was hived off long ago, and VAG now owns.
VAG foolishly did not licence the rights to the name.
BMW subsequently did, and puts the name on badges on the cars it builds at a new factory near Goodwood, which has no connection or history shared with the old RR cars or factory.
- Joined
- 31 May 2016
- Messages
- 24,768
- Reaction score
- 5,336
- Country
90% correct.No it isn't
It's a company that mostly makes aero engines. You can buy shares in it if you want. The price has recently rocketed in the hope of military orders.
Rolls-Royce Holdings PLC, RR.:LSE summary - FT.com
Latest Rolls-Royce Holdings PLC (RR.:LSE) share price with interactive charts, historical prices, comparative analysis, forecasts, business profile and more.markets.ft.com
It no longer owns the car company, which was hived off long ago, and VAG now owns.
VAG foolishly did not licence the rights to the name.
BMW subsequently did, and puts the name on badges on the cars it builds at a new factory near Goodwood, which has no connection or history shared with the old RR cars or factory.
Rolls-Royce PLC - the industrial engine maker (jet engines, power stations, nuclear etc)
Rolls-Royce Motors - a subsidiary of BMW (which is not part of Volkswagen Audi Group.)
https://www.volkswagen-group.com/en/brands-and-brand-groups-15811
https://internationalexcellence.co....d-rolls-royce-plc-are-two-different-companies
Nobody said it was.
- Joined
- 31 May 2016
- Messages
- 24,768
- Reaction score
- 5,336
- Country
VAG bought the Rolls Royce car company (from Vickers, actually, it has passed through various owners since it was hived off 50 years ago) including the factory and various rights to previous models. They still own that company, and still sell cars, which are now only badged Bentley, and the company name has been changed.
This is because BMW subsequently bought the rights to the name. VAG and BMW eventually came to an agreement to tidy up the mess, and BMW built a new factory to assemble cars with the Rolls Royce name on them.
I never said that VAG and BMW were the same company.
There are companies that sell goods badged "Bush" or "Kenwood" or "Ariel' because they have bought or licenced the right to use the name. This does not mean they are the same company that previously used that name.
Observe the context, which does not refer to the luxury car market.
Defence contracts for jet fighters, bombers etc use aero engines.
Rheinmetall and Rolls Royce have both had big increases in stock value since Putin invaded Ikraine,
- Joined
- 31 May 2016
- Messages
- 24,768
- Reaction score
- 5,336
- Country
SMRs and submarines are driving RR share price. Both markets have grown significantly in recent months. Also RR was depressed by the corruption scandal that it had to address.
In the last 3 months many stocks have grown 60+%.
In the last 3 months many stocks have grown 60+%.
- Joined
- 22 Aug 2006
- Messages
- 7,050
- Reaction score
- 1,171
- Country
I thought the Jerries bougt the lot so thanks for that.
Hell no of course the cars sales aren't doing amything much. The "RR" shares have nearly doubled this year. It happens that there's a 3x fund, which has done well of course. WHere a trend is strongly up. those 3x's are compelling, though they have to be monitored.
Some of the jumps have been to do with aero engines, but I think a lot is "sentiment". i.e. an addiction to Hopium.
I don't care much, take it and use stop-losses.
Hell no of course the cars sales aren't doing amything much. The "RR" shares have nearly doubled this year. It happens that there's a 3x fund, which has done well of course. WHere a trend is strongly up. those 3x's are compelling, though they have to be monitored.
Some of the jumps have been to do with aero engines, but I think a lot is "sentiment". i.e. an addiction to Hopium.
I don't care much, take it and use stop-losses.
- Joined
- 31 May 2016
- Messages
- 24,768
- Reaction score
- 5,336
- Country
yep fairer on younger people who have had less years to benefit. The same should be true for pensions. Once you hit a certain amount, your tax free element is reduced.
It isn't fair for a person with 200k in ISA's to have the same limit as someone with 60k. A person with a pension of 1.5M should not be allowed 60k in tax free while a person with 1M can only put 10k in.
- Joined
- 31 May 2016
- Messages
- 24,768
- Reaction score
- 5,336
- Country
The Rolls-Royce name and logo were controlled by Rolls-Royce plc, The car maker, had a perpetual, royalty free right to use, (but not asign) subject to certain conditions. One being a no-foreign control veto clause which RR PLC leveraged. It was Vickers who sought to nullify the RR veto, citing anti EU competition law. But RR had a letter from the EU comforting them that the veto was not a competitive issue. They later changed their mind (who'd have thought). Meanwhile the VAG deal was not dependant on the RR brand and BMW bought the rights for £40m from RR PLC.
No doubt a fair few IP lawyers earned a fee. So VAG had no dog in the fight.
- Status
