Reduction of Dividend Allowance?

C_Mababejive

How long will ISA's be safe ??

Apodemus

Malthusian wrote: »

Interesting one. Most platforms do not charge you extra for opening an ISA (e.g. those that charge a percentage fee). However I know some like Alliance Trust do charge an annual fee per account..

Except that since my holdings are currently held as paper certificates, I will incur annual fees which which I am not paying at present.

I agree, though, that it is unwise to let the tax-tail wag the investment dog.

bowlhead99

Apodemus wrote: »

Except that since my holdings are currently held as paper certificates, I will incur annual fees which which I am not paying at present.

I agree, though, that it is unwise to let the tax-tail wag the investment dog.

As an example, execution-only broker X-O (http://www.x-o.co.uk/isa-information.htm) will give you an ISA wrapper with a simple nominee service for UK shares / ITs / ETFs for free, hoping to make money out of you at £6 a trade when you decide to do some buying or selling.

Other more full-service firms like TD Direct Investing (https://www.tddirectinvesting.co.uk/rates-and-charges) have some nominal annual admin fee on their ISA but waive it if you have a balance of over £5100 or you have set up the account to do at least some 'regular investing' into shares or funds by direct debit. I haven't paid ISA admin fees there for the last decade and it is cheaper and less hassle than trading off a paper certificate if I wanted to sell something.

Dird

C_Mababejive wrote: »

How long will ISA's be safe ??

Hopefully for a long time otherwise everyone will be scrambling to change from ACC to INC

GooeyBlob

Thanks folks. Point taken about the tail wagging the dog.

As I say, I'll be unable to move a lot of my current investments into an ISA unless I start recklessly spending my disposable income, big-hat-no-cattle-style, which won't be happening. Will have to see how much is left of my ISA allowance towards the end of the next tax year, might be a few grand.

Nice to know about REITs; should I decide to look at one with a view to growth I know I don't have to worry about the PID too much.

VCTs while racy are fantastic for income so investing a few K in one or two more will be a good place to start. Trouble is, they only generate more income to put in an ISA making the task of moving existing investments a little harder...

polymaff

Thrugelmir wrote: »

The majority of people in this country would consider it only fair that the burden of taxation is more equitable......

The people in this country want to see others paying more tax.

bowlhead99

GooeyBlob wrote: »

VCTs while racy are fantastic for income so investing a few K in one or two more will be a good place to start. Trouble is, they only generate more income to put in an ISA making the task of moving existing investments a little harder...

Well, why put the dividend income from them into an ISA? If they are fantastic for income, why not just spend the dividend income on buying more of them?

Most VCTs have dividend reinvestment programs to allow you to divert the income stream into buying more newly issued shares of the same VCT without needing to meet their minimum subscription level of £3k or £5k or £10k or whatever that you'd need to put in to a new fundraising round. That additional mini-subscription made on your behalf also has the pleasant side effect of qualifying for yet more income tax relief assuming of course you're actually paying some tax in the year it happens.

ColdIron

It looks like Hammond is to scrap his planned NICs changes, I suppose it would be too much to hope that he'll reverse the Dividend Allowance threshold reduction. Fingers and legs crossed

EdSwippet

ColdIron wrote: »

It looks like Hammond is to scrap his planned NICs changes, I suppose it would be too much to hope that he'll reverse the Dividend Allowance threshold reduction. Fingers and legs crossed.

Unlikely. Under the arbitrary rules of government manifesto pledge logic, reducing or removing an allowance in a way that causes people's tax liability to increase is not a "tax increase".

System

That is politics! There was an economic rationale for the increase in the NIC, but there is no economic rationale for the reduction in the dividend allowance as it causes the profits of firms to be taxed twice.