Budget: £15000 ISA Limit from 01/07 for Cash OR S&S

scubascuba3

Archi_Bald wrote: »

No need to shout, scubascuba3. "They" can tax anything they like. The only thing that is generally not done is taxing anything retro-actively. The whole point about budgets is a forward-looking financial plan, and if the country needs more income from tax, nothing will be sacred.

Just getting to grips with formatting, the default seems to be microscopic. I tried 7, a little big.. But I'm confident it will never happen, I'd even put a 5er on it

kidmugsy

Archi_Bald wrote: »

"They" can tax anything they like. The only thing that is generally not done is taxing anything retro-actively.

Not generally, but Woy Jenkins put a retrospective tax on gilts income in the sixties that resulted in some people paying marginal income tax rates of more than 100%.

buckster

I need to move my isa as my years up this Saturday and the rate drops to 0.5%. If I go with the santander 123 2 year fix, will they allow me to add any further money on July 1st as it says that you can only deposit cash up until 31st May. Are you able to move your old cash isa money to say santander 123 and open one with Halifax and only fund that one after 6th April. I'm not sure of what the rules are.

Gorgeous_George

Only the rich can afford to save £15,000 per year. Great headline grabber but worthless to the likes of me.


Why not just remove tax on all savings up to £100 (in total)?


Seems crazy that I have to declare the few pounds that I earn on my current account (at 0.1%) when I complete a tax return.


Gideon Osborne - muppet.


GG

scubascuba3

Gorgeous_George wrote: »

Only the rich can afford to save £15,000 per year. Great headline grabber but worthless to the likes of me.


Why not just remove tax on all savings up to £100 (in total)?


Seems crazy that I have to declare the few pounds that I earn on my current account (at 0.1%) when I complete a tax return.


Gideon Osborne - muppet.


GG

They have. First £5,000 is now tax free. They barely mentioned it

scubascuba3

buckster wrote: »

I need to move my isa as my years up this Saturday and the rate drops to 0.5%. If I go with the santander 123 2 year fix, will they allow me to add any further money on July 1st as it says that you can only deposit cash up until 31st May. Are you able to move your old cash isa money to say santander 123 and open one with Halifax and only fund that one after 6th April. I'm not sure of what the rules are.

Yes you can save your Isa amount with whoever you like. I have a Santander Isa, I may add to it or use another bank.

jimjames

scubascuba3 wrote: »

I'm guessing the ISA cash rates will increase otherwise people will now switch their money in to stocks and shares. Another clever idea by the chancellor.

Why will they increase?

Everyone has had the option to put £11560 into S&S anyway so I can't see why they would change purely based on a higher limit. I certainly wouldn't expect anyone to switch to a S&S ISA when they can keep the whole amount in cash when they couldn't before

scubascuba3

jimjames wrote: »

Why will they increase?

Everyone has had the option to put £11560 into S&S anyway so I can't see why they would change purely based on a higher limit. I certainly wouldn't expect anyone to switch to a S&S ISA when they can keep the whole amount in cash when they couldn't before

Because rates are so rubbish investors may decide to transfer their cash isas into S&S ISAs which means the provider will have less cash to lend. So to increase deposits they will need to increase rates to make them more attractive.
If rates increased you may then choose to transfer back into cash ISAs.

Archi_Bald

scubascuba3 wrote: »

They have. First £5,000 is now tax free. They barely mentioned it

Not really true. This only applies to people whose total income plus savings interest is less than £15,500. Although this is apparently 1.8m people, it's way from all tax payers.

Archi_Bald

scubascuba3 wrote: »

Because rates are so rubbish investors may decide to transfer their cash isas into S&S ISAs which means the provider will have less cash to lend. So to increase deposits they will need to increase rates to make them more attractive.
If rates increased you may then choose to transfer back into cash ISAs.

Banks aren't dependent on savers' deposits. They still can get significantly cheaper money from the Funding For Lending scheme.