P2PISA on the way..

planteria

http://www.bbc.co.uk/news/business-29653476

bsms1147

MSE thread https://forums.moneysavingexpert.com/discussion/comment/66765053#Comment_66765053

planteria

ah, hadn't seen that, sorry

chucknorris

I don't think that it is an extra NISA is it? It merely looks like it would be an extra option of where to invest your NISA.

Archi_Bald

There is nothing that suggests annual ISA allowances will be increased just because another investment instrument will be offered. But who knows what pre-election desperation will produce.

chucknorris

Archi_Bald wrote: »

There is nothing that suggests annual ISA allowances will be increased just because another investment instrument will be offered. But who knows what pre-election desperation will produce.

I was very happy with the increase to £15k and even better the total flexibility between cash and SS (N)ISA's. But when I first read the article I (greedily) misread it (wishful thinking) and thought that there was going to be an additional product over and above the £15k NISA.

planteria

i think that is very possible..
are the government going to look at P2P and determine that it is 'good for the economy'? or is it, actually, a potential timebomb, from their point of view?

markwilkinson

I havnt paid too much attention to P2P. If this is going to be a separate ISA allowance then I will reconsider.

colsten

markwilkinson wrote: »

I havnt paid too much attention to P2P. If this is going to be a separate ISA allowance then I will reconsider.

That would be just like the mania about having to have a cash ISA as it is tax free. Never mind that "tax free" is totally irrelevant since the tax free interest can't even touch the taxable interest you can get elsewhere.

P2P is not terribly exciting these days for the lender. After taking out defaults, or insurance against defaults, P2P might just about still beat cash deposits. I can't see it becoming some kind of exciting investment just because HMRC won't tax the (meagre) returns once P2P can be held in ISAs.

Even if there was a separate P2P ISA allowance, in addition to the existing allowance (which I very seriously doubt will happen because nobody in the Treasury ever said it would), I doubt that it would be a great place to pump your £15K or however much into it.

colsten

planteria wrote: »

i think that is very possible..
are the government going to look at P2P and determine that it is 'good for the economy'? or is it, actually, a potential timebomb, from their point of view?

It is a heck of a lot easier for the Treasury to just print a bit more money than trying to raise the occasional £15K from private investors to encourage the personal and small business borrowers to take on more debts.

planteria

fair points colsten.

i use my ISA allowance for S&S, and i am glad that i am in a position to do so without worrying about needing the funds soon. otherwise, with the rates so low, it is a difficult decision. on one hand, rates are the key...pure cash return, right now. but also, in theory, utilitising, retaining and building up an ISA pot, even in cash, when rates increase, could at some stage make the tax-free element really significant to savers.