CGT under review - any potential implications for ISAs or SIPPs?

bd10

Hi all,

What do you view the Treasury's review of CGT? Specifically, do you think ISAs/SIPPs might be affected as well? I know it's early days and pure speculation. Has there ever been an attempt by Treasury/gov't on ISA's/PEP/Sipp in living memory?

If the CGT allowance were to be abolished/reduced, that's easy prey, but do you think they would go as far as to touch tax free savings/pensions?

Thanks

eskbanker

Based on the published scoping document and call for evidence, I don't see anything that suggests that the review would consider extending CGT into environments currently sheltered from tax:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/900225/CGT_Scoping_document_July_2020.pdf
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/900348/CGT_Call_for_Evidence.pdf

Old_Lifer

In my opinion  some sort of restriction on ISA's is likely to happen in the not too distant future,  either a lfetime cap on the amount that can be contributed  or  a cap on the amount that can be held in an  ISA.    I understand there are already well over 1000  ISA millionares and that will only grow.   Many of today's millionaires will become double millionaires  

I would hope that existing ISAs would remain tax-sheltered.

dunstonh

Tax wrappers are not affected by CGT.   So, any changes to CGT will not change the tax wrappers.    
Now, whether the tax wrappers get looked at in a future review is a different matter.   

bd10

I had the tax wrapper in mind. Good to read that this is not part of the scope of the review. My concern really is, whether there is historic precendence where previous tax wrappers for savings instruments were reduced or abolised.

masonic

The Help-to-buy ISA scheme was closed (in the process of being replaced by the Lifetime ISA)

The child trust fund scheme was closed (in the process of being replaced by Junior ISA)

The TESSA and PEP schemes (from the 1980s-1990s) were both closed (replaced by the ISA between 1999-2008)

Retirement Annuity Plans (from the 1970s-1980s) were closed (replaced by Personal Pension Plans (inc. Stakeholder plans, NEST, SIPPs etc) between 1988-2006)

There are probably others. I'm not aware of any such scheme that wasn't replaced with something else with broadly the same tax treatment.