MSE News: Budget 2016: Cash ISA allowance up to £20,000 in 2017

colsten

Pincher wrote: »

ISA, ISA everywhere, but not a drop of interest worth drinking.

There's more to ISAs than just cash ISAs.

talexuser wrote: »

I think it's brilliant, can't wait to top up 20k in S&S ISA and then sit back and watch it grow. Surely a lifetime limit on ISA capital must be on the cards at some time in the future? 25 years of 20k would be half a million free of all dividend/interest and capital gains tax?

People don't need to save £20K for the next 25 years to have more than £500K in an ISA. Quite a few have had more than £500K in their ISAs for a while already.

talexuser

colsten wrote: »

Quite a few have had more than £500K in their ISAs for a while already.

Absolutely. Surely a lifetime limit like pensions will happen at some time in the future?

robin58

Well when the government pulls in it's cheap loans to the banks that they got to give out loans.

And the banks turn back to us, the bread and butter savers, with decent interest rates, I don't see the point in putting any money into them, not even for the tax break.

jimjames

robin58 wrote: »

Well when the government pulls in it's cheap loans to the banks that they got to give out loans.

And the banks turn back to us, the bread and butter savers, with decent interest rates, I don't see the point in putting any money into them, not even for the tax break.

So don't put it in cash then. If you want cash use current accounts, if you want long term money then use investments that are far better suited to a tax wrapper anyway

Flobberchops

amistupid wrote: »

My ISAs are like my sex life...

...it costs me thousands of pounds and I either get an underwhelming payout once a month or a pleasant surprise once a year.

masonic

Pincher wrote: »

As for S&S ISA, you need to have a portfolio over £100k to make a S&S ISA worthwhile. Even if you go over the £11,100 gain limit, you only pay 10% CGT from 6th April. £5,000 tax free dividend is also hard to go over.

I'd rather pay 0% CGT than 10% CGT and assets below £100k are quite capable of generating gains much higher than 11.1%. Interest on bond funds is paid net of 20% income tax unless you hold them in a S&S ISA where you receive a tax rebate.

There is also the freedom from monitoring your gains/losses and keeping records for HMRC that make a S&S ISA worth having for pretty much anyone who invests.

Pincher

masonic wrote: »

I'd rather pay 0% CGT than 10% CGT and assets below £100k are quite capable of generating gains much higher than 11.1%. Interest on bond funds is paid net of 20% income tax unless you hold them in a S&S ISA where you receive a tax rebate.

There is also the freedom from monitoring your gains/losses and keeping records for HMRC that make a S&S ISA worth having for pretty much anyone who invests.

That's a pro and a con, then:


Pro: I assume you are right on the rebate on bond funds, never had one.


Con: Gains you can control by selling up to the £11,100 limit, losses you cannot carry forward from inside an ISA. I carry over £30k of losses from previous years. It would be more like £50k if I could have carried losses incurred inside ISAs. I cold really use them this tax year.

masonic

Pincher wrote: »

Con: Gains you can control by selling up to the £11,100 limit, losses you cannot carry forward from inside an ISA. I carry over £30k of losses from previous years. It would be more like £50k if I could have carried losses incurred inside ISAs. I cold really use them this tax year.

Yes, losses cannot be exploited if you invest within a S&S ISA. I always plan for success, though

Of course, if you can get everything within an ISA, then there would be no taxable gains to offset the losses against anyway.

talexuser

Pincher wrote: »

the preservation and furthering of your horde. Oink oink.

I'm in.

As for losses can you not use ISAs for the more conservative "absolute" type investments, use the 5K dividend band for more racy stuff for capital gains?

Pincher

talexuser wrote: »

I'm in.

As for losses can you not use ISAs for the more conservative "absolute" type investments, use the 5K dividend band for more racy stuff for capital gains?

I may very end up doing that. Current size of portfolio (smallish) means I prefer to gamble more.