Budget 2009: Cash Isa Limit Increased

hebron

I've just turned 50 so do I feel excited, No! As interest rates are so low its nothing to get excited about. In the long term if interest rates go up it might be better. He should have done something so that you don't have to keep transferring them every year and all the hassle that takes, that would have been better. And making the same rules for every cash ISA like allowing partial transfers with every provider and every ISA you should be able to transfer into.
As for the over 50s get extra this year, don;t make much difference does it only antagonize those under 50.

gcw84

hebron wrote: »

As for the over 50s get extra this year, don;t make much difference does it only antagonize those under 50.

Exactly - I feel really strongly about this and won't give up without a fight!

The fact is, with interest rates the way they are at the moment, the amount of interest I'd earn on the extra allowance would be negligible (though, of course, still better in my pocket than HMRC's). However, that's beside the point. More important is the fact that over 50s can put an extra £1500 into an ISA this year, and then another £5100 in 2010-11. Nobody can tell what the interest rate will be by then, but it will surely rise in the future and this then means that the over 50s have an extra £1500 ISA wrapped away from the tax man, where under 50s don't.

And, there's no clear relationship between age and ISAs to explain this. It's just blatantly unfair.

BruceyBonus

I'm currently drafting a letter to send to my local MP and Alistair Darling. I would also like to arrange a petition, if anyone is interested.

I believe this policy is complete and utter discrimination against under 50s who have been saving for their entire lives.

gcw84

BruceyBonus,

Thank goodness - someone like-minded!

I shall also be writing to my MP, but I'd also be interested in starting a petition. Can we set one up on the number10 website, like Martin used for the petition about interest rates on bank statements?

Gary

Optimist

BruceyBonus wrote: »

I'm currently drafting a letter to send to my local MP and Alistair Darling. I would also like to arrange a petition, if anyone is interested.

I believe this policy is complete and utter discrimination against under 50s who have been saving for their entire lives.

Its quite easy, the over 50s vote. He hopes they will look kindly on him come voting time !

BruceyBonus

I have now created and submitted a petition to the No 10 website.

We the undersigned petition the Prime Minister to introduce the new ISA subscription limits to everyone in October, not just those aged over 50.

In the 2009 budget by the Chancellor of the Exchequer, Mr Darling announced that the annual ISA subscription limit would be raised to £10,200 (of which £5,100 may be cash). He announced that people aged over fifty would receive the allowance in October, whilst the rest of the population would have to wait until April 2010, therefore losing out on an additional amount of £3,000 that could be saved tax free. This change also puts a huge administrative burden on the already struggling banks and building societies. We believe that it is unfair and discriminatory to introduce the higher allowance for one group of the population only, whilst there are many people under fifty who have been saving for their entire lives and use interest to supplement their income.

Link will be http://petitions.number10.gov.uk/under50sisa once the petition has been approved.

gcw84

Thank you so much for doing this. I shall sign it as soon as it's online and encourage as many other people as possible to do likewise.

Martin - any chance of featuring this in next week's email newsletter?

adambro

BruceyBonus wrote: »

I'm currently drafting a letter to send to my local MP and Alistair Darling. I would also like to arrange a petition, if anyone is interested.

I believe this policy is complete and utter discrimination against under 50s who have been saving for their entire lives.

As I said in the earlier thread before the MSE admin helpfully created us another one, I'm very disappointed that Darling has done this. The calculations earlier in this thread of the benefit over 50s are getting fails completely to take into account that all or some of the allowance can be invested in stocks and shares where much higher returns can be achieved. Over 50s should be very grateful that they can invest £3000 more with the associated tax benefits in advance of everyone else.

Whilst personally I would be unlikely to benefit from having this increase earlier, it is certainly something that I feel is unfair to deny those under 50. The housing market is in a dire state at the moment and for it to be revived requires first-time buyers to get on the ladder. With lenders asking for deposits of 25%, clearly many will be trying hard to save up and it is a shame the allowance change won't be available to them until April 2010.

Wild_Billy

I think this reaction is pretty disgraceful. We complain when the ISA limits aren't increased and we complain when they are. Extremely ungrateful when you consider that any money spent here could no doubt have been spent elsewhere on pensioners or child poverty or whatever.

We really need to be a bit more grown up.

lynzpower

BruceyBonus wrote: »

I have now created and submitted a petition to the No 10 website.

We the undersigned petition the Prime Minister to introduce the new ISA subscription limits to everyone in October, not just those aged over 50.

In the 2009 budget by the Chancellor of the Exchequer, Mr Darling announced that the annual ISA subscription limit would be raised to £10,200 (of which £5,100 may be cash). He announced that people aged over fifty would receive the allowance in October, whilst the rest of the population would have to wait until April 2010, therefore losing out on an additional amount of £3,000 that could be saved tax free. This change also puts a huge administrative burden on the already struggling banks and building societies. We believe that it is unfair and discriminatory to introduce the higher allowance for one group of the population only, whilst there are many people under fifty who have been saving for their entire lives and use interest to supplement their income.

Link will be http://petitions.number10.gov.uk/under50sisa once the petition has been approved.

thanks - not ready yet, but I shall be joinging

What !!!!es me off about this whole thing is that im now 31, nad need to save like mad FOR WHEN IM 50!!! :wall:

Discrimination simply isnt acceptable - and Im staggered ( well, nothing surprises me anymore to be honest) that a LABOUR government thinks discrimination and unfair playing fields are acceoptable, thats what they say the tories do.

BITTER & ANGRY