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

145791015

Comments

  • How does this affect P2P from july..the 3 and 5 year fixed loans pay out income and capital?

    It doesn't affect P2P (or crowdfunding) at all yet and not from July either. The budget mentioned that P2P will be included in the future but the detail simply says that the government is consulting with the industry to work out how to make it work. I can't see any other way for it to work than limiting the new cash you can put in each year and then any income is tax free and capital can be recycled (ie. relent) so long as it isn't withdrawn.
  • jimjames
    jimjames Posts: 17,532
    Photogenic Name Dropper First Anniversary First Post
    Forumite
    boglehead wrote: »
    That is very good news... that means £30k for a family every year (£34k if you include JISA)


    It is good news to see the limits raised and the complications removed.

    I do find it rather amusing that the childcare announcement yesterday aka au-pair subsidy was billed as being a perk for the wealthy and this is being flagged as something for everyone.

    It really isn't the average family that can save £30k per year into ISAs or not when the average wage is less than that and most people have under £1000 savings! Anyone who is able to save £30k per year is going to be earning some substantial amounts unless they are using pension lump sums.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • kidmugsy
    kidmugsy Posts: 12,709
    First Anniversary Name Dropper First Post Combo Breaker
    Forumite
    jimjames wrote: »
    Anyone who is able to save £30k per year is going to be earning some substantial amounts unless they are using pension lump sums.

    Many will doubtless use tax-free lump sums and also taxed pension withdrawals, and bung the money into NISAs. That freezes the income tax rate on their taxable pension money at 20%. Let Mr Balls raise income tax rates, or combine it with National Insurance; if you've already got the moolah out at 20%, you'll just laugh at his effrontery.
    Free the dunston one next time too.
  • So, does that mean i'd be best waiting till july to open a fixed rate isa, if I open one in april, the isa I'm looking at only allows you to add deposits within 60 days of opening or will there be a special rule to let me top-up the remainder?
  • So, does that mean i'd be best waiting till july to open a fixed rate isa, if I open one in april, the isa I'm looking at only allows you to add deposits within 60 days of opening or will there be a special rule to let me top-up the remainder?

    It will be up to your provider whether they allow additional deposits after July. If they don't then you might be better waiting. Given that this is a surprise then you might find the ISA providers changing their rules to accommodate the changes.
  • abarthman
    abarthman Posts: 109
    First Anniversary Combo Breaker First Post
    Forumite
    I've maxed-out my cash ISA for the current year. I don't have any S&S ISAs. I have just received about £20,000 from a matured endowment policy. The cash is just sitting in my current account doing nothing. I also have some bonds maturing soon.

    I'd be grateful if someone could confirm if my understanding of the new ISA rules is correct.

    I can deposit £11,520 into a 2013/14 S&S ISA before 6 April, and then the same amount again into a 2014/15 S&S ISA after 6 April. I would then be able to transfer that whole amount - £23,040 - into a cash NISA in July and then deposit another £3,480 into the cash NISA to bring my total 2014/15 NISA deposit up to £15,000.

    That way, in July, I would end up with another £26,520 in my cash NISA on top of the £5,620 cash ISA that I deposit on 6 April 2014.

    I appreciate that the S&S ISAs could end up being worth less then I deposit, but that's a risk I would be willing to take for about 3 months.
  • Herbalus
    Herbalus Posts: 2,634
    First Anniversary Name Dropper First Post
    Forumite
    abarthman wrote: »
    I've maxed-out my cash ISA for the current year.....
    I'd be grateful if someone could confirm if my understanding of the new ISA rules is correct.

    I can deposit £11,520 into a 2013/14 S&S ISA before 6 April,

    This is the bit that I don't think is correct. You can only put in up to £11,520 this year across both types of ISA. Seeing as you've already put £5760 into cash ISAs, you can only put in £5760 into S&S ISAs before April 6th.

    Everything else makes sense to me, but nobody knows for definite yet.
  • Drp8713
    Drp8713 Posts: 902
    First Anniversary First Post
    Forumite
    abarthman wrote: »
    I've maxed-out my cash ISA for the current year. I don't have any S&S ISAs. I have just received about £20,000 from a matured endowment policy. The cash is just sitting in my current account doing nothing. I also have some bonds maturing soon.

    I'd be grateful if someone could confirm if my understanding of the new ISA rules is correct.

    I can deposit £11,520 into a 2013/14 S&S ISA before 6 April, and then the same amount again into a 2014/15 S&S ISA after 6 April. I would then be able to transfer that whole amount - £23,040 - into a cash NISA in July and then deposit another £3,480 into the cash NISA to bring my total 2014/15 NISA deposit up to £15,000.

    That way, in July, I would end up with another £26,520 in my cash NISA on top of the £5,620 cash ISA that I deposit on 6 April 2014.

    I appreciate that the S&S ISAs could end up being worth less then I deposit, but that's a risk I would be willing to take for about 3 months.


    I thought 11520 was the total you can have this year, so if you have maxed your Cash ISA you can only put the other half of the allowance remaining into a S&S ISA.


    Also you don't have to buy stocks and shares, you can buy bond funds.
  • badger09
    badger09 Posts: 11,128
    First Post First Anniversary Name Dropper
    Forumite
    abarthman wrote: »
    I've maxed-out my cash ISA for the current year. I don't have any S&S ISAs. I have just received about £20,000 from a matured endowment policy. The cash is just sitting in my current account doing nothing. I also have some bonds maturing soon.

    I'd be grateful if someone could confirm if my understanding of the new ISA rules is correct.

    I can deposit £11,520 into a 2013/14 S&S ISA before 6 April, and then the same amount again into a 2014/15 S&S ISA after 6 April. I would then be able to transfer that whole amount - £23,040 - into a cash NISA in July and then deposit another £3,480 into the cash NISA to bring my total 2014/15 NISA deposit up to £15,000.

    That way, in July, I would end up with another £26,520 in my cash NISA on top of the £5,620 cash ISA that I deposit on 6 April 2014.

    I appreciate that the S&S ISAs could end up being worth less then I deposit, but that's a risk I would be willing to take for about 3 months.

    If you've 'maxed out' your cash ISA this tax year (ending 5/4/14) you can subscribe only £5760 into a S&S ISA before 5/4/14
  • abarthman
    abarthman Posts: 109
    First Anniversary Combo Breaker First Post
    Forumite
    Thanks for the quick replies and for keeping me right regarding the maximum that I can deposit in a S&S ISA before 6 April.

    It is much appreciated.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards