MSE News: Isa limits to stay, says Treasury financial secretary

JimmyTheWig

ultrawomble wrote: »

Why not? We do on less. A rough estimate of £44K gives about £2500/month after tax etc. Save £900/month and you're left with £1600/month = quite a bit to live on.

£1600 a month? After mortgage and council tax alone that would leave us about £150 a month.

I guess it depends where you are in the country...

chedburgh

JimmyTheWig wrote: »

£1600 a month? After mortgage and council tax alone that would leave us about £150 a month.

I guess it depends where you are in the country...

Or the size of the mortgage you decided to sign for!!!!

JimmyTheWig

chedburgh wrote: »

Or the size of the mortgage you decided to sign for!!!!

I can't argue with that!

gadgetmind

I'm not too bothered about the cash ISA limit but it would be nice if we could all put more into S&S ISAs. These are great to have alongside a pension as they (used to be) diametrically opposed tax wise: with ISAs, you invest net of all taxes but don't have tax on gain or withdrawal, whereas pensions (used to be) paid into before tax but you get taxed on pension income.

I say "used to be" because there are now tremendously complex rules regards what pensions contributions can and can't be made without paying tax on them.

I hate the way they bang on about the pensions crisis while at the same time being busy creating it!

Ian

Devonian_Rodders

triplea35 wrote: »

Cash ISA's are virtually worthless to anyone other than higher rate tax payers. You can get better rates 'net of tax'. The only people profiting from ISA's are the Banks.

Cash Isa's are no longer a viable proposition except for new investors. Banks offer higher rates for one year, after which interest rates are depressing. For example, for some years I have held just over £17K in cash Isa's (although had new ones with other institutions) and the total net return per annum is just £52 or £4.35ish per month.

Time to ditch and switch as Martin often says :money:

Baldur

Devonian_Rodders wrote: »

For example, for some years I have held just over £17K in cash Isa's (although had new ones with other institutions) and the total net return per annum is just £52 or £4.35ish per month.

You've obviously not 'kept your eye on the ball' - had you transferred the poor ISA funds to a different ISA provider, even one offering 3% AER on £17,000, you would have earned £510 per annum/42.50 per month.

Primrose

Can somebody please advise what the ISA allowance will be for the next tax year starting 5 April 2011? I believe it's being increased slightly.

Baldur

Primrose wrote: »

Can somebody please advise what the ISA allowance will be for the next tax year starting 5 April 2011? I believe it's being increased slightly.

See http://www.moneydashboard.com/tips/article/news073

black_taxi_2

thx balder

great website