Budget 2009: Cash Isa Limit Increased

Jennifer_Jane

gcw84 wrote: »

Jen,

Please see my previous post above (number 45).

I explained there why it matters that over 50s get the extra 6 months. It's not the fact that they get 6 months' extra interest but rather that they get an opportunity to wrap £3000 extra away from the taxman...

Gary

So would you prefer that the new ISA rule had just been brought in with effect from April 10?

I wouldn't have had a problem with the new ISA rules coming in for everyone then, but since Darling has done this, I just don't understand the passion that has been reflected here saying it's unfair and so on (not by you). Would those people prefer that the rules be changed so that everyone only got the benefit from April 10?

For me, I don't care. I will be putting money into a S&S ISA - and probably in Sept. What will happen to that money who knows! I'm not a personal fan of savings anyway, I prefer the risk.

Jen
x

amcluesent

>All the serious pain is being reserved for the next government so that electors blame it<

Yep. Clown's been running a 'scorched earth' policy for a year now. Printing money will ensure he leaves the Tory's with a battle over inflation too.

In 1997 Clown inherited the best economy for generations. In 2009, he'll leave office with England's economy in ruins, the £ worthless, 10 million idle, tax sky-high and inflation on the rise, but the chav underclass wanting for nothing. How very socalist.

littlemrtinkle

I for one am disgusted that this isa increase is for over 50's to begin with... They should treat all isa savers equally regardless of age.

Hungerdunger

Jennifer_Jane wrote: »

the 61% tax rate that has happened because of the removal of personal allowance for people on over £112,000

I appreciate it isn't directly related to this thread, but as you mentioned it, I'd love to know where you get the figure of 61% from.

Mikeyorks

Presumably 50% tax + 11% NI = 61% (plus, of course, the extra 1% NI above the Upper Earnings Limit = 62%)?

Hungerdunger

Mikeyorks wrote: »

Presumably 50% tax + 11% NI = 61% (plus, of course, the extra 1% NI above the Upper Earnings Limit = 62%)?

Except that the 50% rate doesn't kick in until the earnings get to £150k by which time (if my understanding is correct), NI has dropped to 1%. And while you could call NI Contributions a tax, they generally aren't referred to in that way.

gcw84

masonic wrote: »

The problem with this argument is that anyone under 50 is probably going to get the opportunity to wrap a lot more money away from the taxman by the time they reach 50 than any existing 50 year old.

Don't you believe it! The rules will change long before many of those discriminated against on this occasion get anywhere near 50!

BruceyBonus

Petition is now live at http://petitions.number10.gov.uk/under50sisa/

Please sign if you believe it was unfair on both individuals and the banks/building societies to introduce the new allowance for over 50s in this tax year, whilst making everyone else lose out on the extra allowance for this year.

Also, please sign if you are over 50 and believe this was unfair.

Thank you very much

Wild_Billy

BruceyBonus wrote: »

Please sign if you believe it was unfair on both individuals and the banks/building societies to introduce the new allowance for over 50s in this tax year, whilst making everyone else lose out on the extra allowance for this year.

Also, please sign if you are over 50 and believe this was unfair.

Thank you very much

I've lost the will to live. There are some very small-minded people posting on this thread.

No-one here has "lost" anything. I'm under 50 and didn't expect an uplift in the limit from £3600 and, frankly, I'm thrilled its jumping so much next year. I'm grateful for what I'm getting because I didn't expect to be getting anything either this year or next.

That a particular age group is getting 6 months benefit is really pretty inconsequential. If the alternative is that no-one gets the uplift until 2010/11 then I'm just glad that someone is getting the early benefit. That's the difference between people who are driven by a sense of jealousy (masked as "fairness") and those who are happy to lend a brother a hand.

adambro

Wild_Billy wrote: »

That a particular age group is getting 6 months benefit is really pretty inconsequential.

It isn't a "6 months benefit". The benefit, assuming the over 50 year old takes it up, can continue for as long as they live or ISAs exist. There seems to be a great misunderstanding that all is happening here is that some people are getting something earlier than others. The reality is that over 50s are getting something that everyone else won't get, the opportunity to subscribe an extra £3,000 this year. When April 6th 2010 comes round and everyone is getting the same ISA allowance, those under 50s will still be behind.

The term envy is probably more appropriate than jealousy but it seems perfectly reasonable for people to be unhappy about missing out on something. The tax that the government don't get because of ISAs is tax that will simply come from elsewhere so we're all paying for it someway or another. It just isn't clear why the majority of society should be funding a benefit that isn't obviously justifiable.