Isa’s ..

[the80sweregreat]

I have one that is over 12k , will the remainder in there be taxed after the budget? I have never invested in stocks and shares and no idea how it will affect me.
Will the bank have to advise me?
I am a bit of an ignorant about things like this to be honest.
Will the budget changes happen immediately?

I read it as after next April (if it does come in) you’ll only be able to put £12000 in there instead of the current £20000. So any current savings are fine, it’s just less savings you can put in from next year. But someone else might be more knowledgeable, I only skim read a couple of articles. Annoying though for people who do have savings.

No, it won’t be retrospective (if it happens at all). It’ll be applied from next April.

Along with the (apparent) new tax on take away/sold coffees, ice creams, soft drinks etc. 🙄

Thank you both.
The milk shake proposed tax is an odd one isn’t it!

I didn't realise it was on coffees too?!

I think regular take away coffee etc will stay the same, it’s the packaged ones you buy in the fridge in supermarkets that will have the sugar tax, as these are generally pretty high in sugar (looking at you Starbucks Frappuccino)

I’ve seen a few ads on social media from my bank about investing in stocks and shares.
I haven’t a huge amount saved up, but I’ve always just gone for the cash ISA savings ones as I had stocks in my head for the mega rich to invest in etc. I admit I am a bit clueless though. Do the government want more ordinary savers to invest in things other than cash ISAs etc?

Not really. I think it makes them the same as other drinks with a high sugar content.

Does anyone know if this includes the Lifetime ISAs? If it does, then what’s the point in having one?!

How about we all wait to see what is actually announced?

Between us, my OH & I have a very considerable sum in ISA's but are not thinking about or worrying about what is going to happen until it is actually announced and we see exactly how it is going to affect us (or not).

That’s exactly what they want. They’ve been pretty vocal about it. To be fair to them, on this they’re probably right.

I’ve read that the government want us to invest in stocks and shares so I expect there will be a big media campaign to do this over the next few months and Robbing Rachel will give us a speech tomorrow of the advantages of investing. The cash ISA products that are currently being run will automatically switch to S&S ISA’s next April unless we move it elsewhere is what I’m also guessing.

It's only limiting the new money you can put in each year down to 12k from 20k.
Any money shielded by an ISA produces tax free growth.

Just wait until tomorrow!

Any answers today are pure speculation.

No, it wont be taxed. It's a limit on the amount you can pay into a cash isa per year, not the total amount. You can have as much as you want in a cash isa as long as you dont pay in more than the yearly limit.

Yes, they want people to invest rather than save in cash. You will never beat inflation leaving large amounts of money in cash. Much better to invest in stocks and shares if you can leave the money for minimum 5 years.

You can only put 4k a year in a LISA anyway so nothing would change there.

Nobody is going to change your existing cash isa to a stocks and shares one. That just isnt going to happen. You will still be able to pay into a cash Isa and open a new cash isa just as you can now. It is just a reduction in the yearly amount you can pay in.

You're right, I was being a bit hasty. So happy days - I can still keep my existing cash ISA topped up to the max and from April 1st I can open up another one, most likely only up to £12k. I won't be doing S&S, I don't like risk.

So everyone who has the money and inclination should also be maximising their allowance before March 31st.

Yep, as widely predicted, the reduction begins from the start of the next financial year, but not for everyone (the over 65s are exempt).

I wonder what magically happens at the age of 65. Seems a bit arbitrary.

I’m not 65 yet , but at just over 60 now I’m getting more lines and need the toilet a lot more! Sleep has improved though.
I admit I don’t understand everything in the budget , so much to wade through and I doubt everyone will be happy about it.

@rainbowunicorn yes, I think I’d misunderstood and thought once the Lifetime ISA balance gets to x amount, I’d then need to pay tax on it.

I've read it as you can still put 20k in an ISA but 8k of it must be in a stocks and shares ISA rather than a cash ISA

Yes that’s what I’m inferring. So I was right, after all!

You would have a cash ISA which you could put up to 12k in per year and then you would open a seperate product as a stocks and shares ISA where you could invest the rest of your alllowance. They would be 2 seperate products. It won't be a case of the provider transferring anything over your limit to stocks and shares. You would need to do that.