Robbing Rachel’s ISA Reforms

[TheSassyTraybake]

Although not mentioned in her speech the document released by the treasury hints at reforms to ISAs to “get the balance right between cash and equities to earn better returns for savers, boost the culture of retail investment, and support the growth mission”.

Nothing concrete as yet but looks like they are planning to move against cash ISA’s, either reducing the annual limits or the amount that can be held in them.

Personally I think a cash ISA is a waste of time, but that’s because I use my annual allowance for stocks and shares.

Interested in other people’s thoughts?

I think its quite sensible to encourage isa saving into stocks and shares - there are loads of platforms to choose from and the management is getting easier. The changes don't bother me in the slightest.

I'm more concerned about the rumour going round that she was thinking about scrapping ISAs full stop, or reducing them to a minimal amount !!!

Seems sensible to me. I’d have thought you’d agree @TheSassyTraybake since her thinking is in line with your own.

“Robbing Rachel” is a stupid nickname.

The vast, vast majority of the country simply do not have to worry about it. Most people don’t have £4,000 spare a year (the amount she’s reportedly going to cut the ISA allowance to), let alone £20,000. Maybe she should fix that if she wants people to invest.

I do agree. But other people might not.

An extra £40 billion in tax and rumour is there will be more before the year is out. More money for fewer/worse services. Economy stagnating at best. Claims she wants to boost growth but hammers business with extra tax which will lead to job losses and increased prices.

I’m comfortable with calling her Robbing Rachel, thanks.

I agree it's a stupid and inappropriate nickname and marks you out as a Tory or a journalist, probably both.

I have fairly decent ISA balaance but I'm not confident to put that into stocks and shares. I've read a lot around the ISA figure being dropped to £4k per year but it would peeve me off knowing she's trying to force my hand to ut my savings into shares 🤣

I am very risk averse with money and don’t want to put it into stocks and shares though! - why should we all be forced into investing in stocks and shares ?

Accusing anyone of being a Tory really isnt the insult you think it is in light of Labour's shower of shit performance.

Cross posted there with *Ilikewinter

I am in a similar position- have a nice little pot but not in a position to be risking the money.

Interesting that you think being a Tory is an insult. If the cap fits...

I mostly meant showing a political bias that means the person cannot be trusted to make reasoned comments. Not that Tories are incapable of being reasoned, they just choose to let their tribal hatred overwhelm their brains.

Which of those things involve robbing someone?

I think political nicknames like that are childish at best, but at the very least go for something vaguely accurate.

And Labour supporters don't? 🤣🤣🤣🤣🤣🤣
Thanks, I needed that laugh!

I know stocks and shares ISAs can earn better than simple savings, however the opposite can also apply. They are a long term option really - maybe not that sensible if you are older. How do I know I’ll still be around in 10 years? What if I needed the capitol when markets have dropped? (Possible considering how the world economy might be heading)

This is my concern.

I might need to get my grubby mitts on the money 2-3 years from now, so I want something safe, with an absence of volatility.

If you need capitAl you need capital. It’s part of investing, you take that risk.

DP and I have had as much as money as we can in cash ISAs over the last few years, and this year it is the right time for us to buy a house, probably our last one. (Been renting and house sitting the last few years for various reasons). We were fortunate enough to get an inheritance which has made this possible, plus savings. We will be cash buyers, as we're a bit too old to start a mortgage again now. We have other money in Premium Bonds and a decent savings account.

After we've used up most of the money on the house we won't have much savings left at all. This house will be everything to us and our security in old age. Why should we have been pushed to invest in an uncertain stock market? We could have lost a lot, potentially. TBH we don't know much about shares as we've never had the money spare to invest. It always seems like gambling to me.

My dad in his 80s still has a large share 'portfolio' which he says he enjoys managing. He's done well on it over the years, apparently. I've suggested that with the world situation as it is he should consider putting in the bank instead. But he doesn't agree, up to him obviously.

I can see investment is probably good for the country, etc, but there are many people who can't afford a risk.

For most "normal" people ISAs are a waste of time as you get your first £1,000 of interest tax free anyway (if a basic rate taxpayer), and people with low incomes, like state pension only or a part time job only, get another £5,000 exemption for interest due to the personal savings allowance. So for most pensioners, lower paid or part time, or non workers, they can earn up to £18k of income (combination of pension, wages and interest) tax free anyway!

I am annoyed at this change which looks increasingly likely; my investments/savings pot is from a pension lump sum which has already contributed to the economy via taxation on my salary and fees. I want to park it in a tax free vehicle before I need to spend it. Even though inflation has been eroding my spending power, I am not playing roulette with the money (although I do have one S&S ISA with what I consider a sum I am prepared to lose).

Voted Lib Dem this time, Conservatives had to go, Labour’s sums didn’t add up. They lied about no tax increases to get elected. I’ve voted Labour and Conservative before and also abstained when the choice was Johnson or Corbyn. Will probably vote for all 3 again in the future. I don’t understand people who choose a political party and stick with it forever like a football team.

Not telling you what I do cause it’s fuck all to do with you frankly.

Me too. I did have investment in stocks and shares when everything tanked in 2008 and only got half my money back before it all went tits up. Had I left it I would have got nothing.
I prefer my ISA I can add or I can move it. I don't even want to look at how the retirement fund I have is doing, the ISA is doing fine.

has already contributed to the economy via taxation on my salary and fees.

It hasn’t. Pension contributions are tax free. Your lump sum has never been taxed.

I have £ in both cash and s&s ISA but as recent weeks have shown, you can lose money in the markets. My S&S ISA is currently less than I’ve put in (thanks to Trump dicking about) so I think it’s madness to force people to invest over holding cash. I try to have a split but this is my first year having S&S and the split is now going to be more skewed towards cash.

Hammering growth and repeatedly wiping out headroom won’t help her or anyone.