Cash Isa Petition

Hooloovoo

jimjames wrote: »

I'm curious how many people are actually affected by the current cash ISA limit which is annual after all. Other than those who have got a retirement lump sum I'd imagine that the vast majority of working families or young people would be nowhere near reaching the current limits let alone doubling them.

Not to mention the fact that a working family with two parents (a rarity nowadays I admit) have both their allowances they can use.

So that's £11280 of cash ISA subscriptions available to a family. Or £940 a month. How many families have that to save?

N1AK

meggsy wrote: »

Please sign the cash isa petition if you agree ...

http://epetitions.direct.gov.uk/petitions/38599

Hopefully it won't get too far otherwise I'm going to have to hunt out a petition to stop them changing it.

If you can afford to save £12k a year then you, and the economy as a whole, would likely be better off if you invested some in funds or shares.

The points made in the petition are largely nonsense, especially re-being able to transfer from stock to cash ISAs as a benefit for pensioners.

innovate

I am astonished that people here seem so intolerant towards people who wish to hold their money in cash rather than stocks and shares.

dunstonh

innovate wrote: »

I am astonished that people here seem so intolerant towards people who wish to hold their money in cash rather than stocks and shares.

I dont see that on this thread. Actually, if anything it is the other way around.

The main arguments against the petition are:
1 - no mention of how the near £2 billion a year tax cost will be paid and which group of people will suffer cuts to pay for it.

2 - why should S&S ISA allowance be used for other things? You dont see people saying they should be able to use Friendly Society limits or the Premium bond limits for their cash ISA.

3 - The current allowance is plenty high enough for most people and the only ones that would benefit would be those that are cash rich.

Paul_Herring

innovate wrote: »

I am astonished that people here seem so intolerant towards people who wish to hold their money in cash rather than stocks and shares.

There's nothing stopping anyone from holding their money in cash if they so wish.

The objections include the fact that they shouldn't have an inalienable human right to hold all of it in a cash ISA.

--

Besides, large sums in cash held over the long term generally decrease in value.

Once you have your '6-month buffer' (or however long you want your 'totally liquid buffer' to support you for in the face of adversity, though 6 months is usually sufficient since that gives you 6 months to liquify any other assets you hold if required) you're probably better off looking to other vehicles in which to hold your copious funds.

jimjames

innovate wrote: »

I am astonished that people here seem so intolerant towards people who wish to hold their money in cash rather than stocks and shares.

I don't think it is intolerance to not want to pay more tax for those that are already rich. Why should the NHS, for example, be cut so that the rich can have higher tax free cash savings?

For a couple £10560 in cash and £10560 in shares each year, total £21120 would seem to be a pretty generous tax free limit for the vast majority of people when the median annual salary is approx £26,000.

innovate

There's a fair chance that most of those who can max their ISA allowance each year already contribute with above average amounts of money towards income tax and NI.

MoneySaverLog

It's a ISA allowance, one should be able to hold the full lot how they want. If they want to hold it all as cash there is nothing wrong with that, just as if someone wants to risk it all in the stock market they can risk their whole ISA allowance.

To penalise those who want the safety of cash to forego half their ISA allowance is what I don't agree with. If you want to use "YOUR full ISA allowance of £11,280" as cash then so be it.

grey_gym_sock

an ISA allowance isn't something one can own, like a house or a toothbrush or a bag of used fivers. it's nonsense to say one should be able to do what one wants with it, as though it's an item of private property.

an ISA allowance is a quirk of the income tax system, and becoming harder to justify the more it costs in lost tax revenue. the more income is exempt from tax, the higher tax rates have to be on income still subject to tax. why are ppl who can't shelter their income within ISAs being penalized with a higher tax rate to benefit of those who can?

MoneySaverLog

Everyone pays income tax on earned income regardless of whether some of it is saved in a cash ISA or not.