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MSE News Comment - Martin Lewis: Will you really gain from the new NISAs?

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MSE News Comment - Martin Lewis: Will you really gain from the new NISAs?

edited 19 March 2014 at 6:17PM in ISAs & Tax-free Savings
62 replies 11.3K views
Former_MSE_DarrylFormer_MSE_Darryl
210 posts
edited 19 March 2014 at 6:17PM in ISAs & Tax-free Savings
"The Chancellor pulled a rabbit out of his Budget back pocket today, which is probably why he's been sitting uncomfortably for so long..."
Read the full story:

Martin Lewis: Will you really gain from the new NISAs?

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  • ISA_boyISA_boy Forumite
    1 posts
    Hi all, 1st time poster here.

    Quick question regarding this new ISA announced in today's budget. Once 1 July arrives will I still be able to save adhoc cash amounts every month into a Cash Isa with Provider A and also continue paying a regular £100 into a separate Investment Stocks & Shares ISA with Provider B?

    I've had my cash Isa since the days of Tessa and Toisa and have a nice cash balance in it. However I only started a separate Stocks & Shares Investment Isa last Sept under a regular monthly contribution of £100. I don't want to have to cash in my investment Isa after only a few months but as that invests in Provider B's own fund, I don't see how I can combine with my Cash Isa under the new NISA

    Will I have to ensure that I dont pay into both separate isas from 6 April?
    Thx
  • ISA_boy wrote: »
    Hi all, 1st time poster here.

    Quick question regarding this new ISA announced in today's budget. Once 1 July arrives will I still be able to save adhoc cash amounts every month into a Cash Isa with Provider A and also continue paying a regular £100 into a separate Investment Stocks & Shares ISA with Provider B?

    I've had my cash Isa since the days of Tessa and Toisa and have a nice cash balance in it. However I only started a separate Stocks & Shares Investment Isa last Sept under a regular monthly contribution of £100. I don't want to have to cash in my investment Isa after only a few months but as that invests in Provider B's own fund, I don't see how I can combine with my Cash Isa under the new NISA

    Will I have to ensure that I dont pay into both separate isas from 6 April?
    Thx

    You can have one cash account and one S+S one next tax year so you'll be able to do what you want to do under the new rules - you'll just be able to put more in and won't be restricted to specific allocations of cash.
  • HerbalusHerbalus Forumite
    2.5K posts
    Eighth Anniversary 1,000 Posts Name Dropper
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    I'm intrigued as to how your cash ISA provider and your S&S ISA provider will know how much you've deposited into the other, and therefore be able to limit you to the yearly amount across the two.

    I guess an S&S ISA already has to do that now, but will the cash ISA providers now have to implement a system of checking how much each depositor has placed in a S&S ISA?
  • innovateinnovate
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    They won't know any more than they do today. E.g. I have two providers currently (S&S and cash) who both keep telling me I haven't yet used my allowance for the year even though I know I have.

    The providers will report deposits to the HMRC like they do today, and HMRC will pull up those who accidentally or otherwise bust their limit. It will remain the responsibility of the account holder to comply with the ISA limits. Nothing new on that front.
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  • innovateinnovate
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    I keep looking at the thread title and just cannot figure out why Martin Lewis would ask that question. Reading the article doesn't make me any wiser either.
  • edited 19 March 2014 at 9:23PM
    JonbvnJonbvn Forumite
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    edited 19 March 2014 at 9:23PM
    innovate wrote: »
    I keep looking at the thread title and just cannot figure out why Martin Lewis would ask that question. Reading the article doesn't make me any wiser either.

    What ML is saying is that it is a popular change with little short term cost impact to the exchequer, given the poor cash ISA rates on offer.

    In the longer term it is a boon (provided the rules are not changed by the next gov't);)
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • dtaylor84dtaylor84 Forumite
    648 posts
    Part of the Furniture Combo Breaker
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    He seems to be suggesting that because current cash ISA rates are so low, the massive jump from £5,760 to £15,000 isn't likely to save anyone a significant amount of tax. Although he does then point out that the rates will probably rise again in the future.

    But it seems to be entirely ignoring the substantial increase in flexibility afforded by allowing transfers from S&S to cash.
  • Trying to be controversial / populist by jumping on the "if the Tories said it there must be a catch" theme that Labour are desperately peddling.

    Plainly it's nothing but excellent news for savers. They can only benefit (the amount they benefit will depend on various factors).
  • gadgetmindgadgetmind Forumite
    11.1K posts
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    I've been doing ISAs (nee TESSAs and PEPs) since they came out, but have always done max in shares and very little in cash. Moving forwards, I intend to max S&S NISAs and regard the increase in limits as long overdue.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
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