Predictions for 21-22 tax year isa

ChilliBobChilliBob Forumite
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Hey guys, 
Much like the various cgt threads on here not long ago, but more optimistically..

Anyone reckon they will increase the isa limits this year? Or any changes?

Read something online about some fund manager suggesting they double it so that people can invest in British companies more (not that I'd do that if they did increase it!)

Thoughts anyone? Probably just keep it the same I reckon! 

Replies

  • AlexlandAlexland Forumite
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    ChilliBob said:
    Anyone reckon they will increase the isa limits this year?
    Seems very unlikely given the economic outlook.
    I would expect many such limits will get eroded by inflation over the next few years.
    Read something online about some fund manager suggesting they double it so that people can invest in British companies more (not that I'd do that if they did increase it!)
    Who is to say people would use higher ISA limits to invest in British companies? More and more UK investors are investing globally despite the UK market looking comparatively better value. There isn't really a problem with people not investing in British companies as many have had no problems raising new capital during this pandemic. The government don't really care about the valuations that these companies are being traded at.
  • ChilliBobChilliBob Forumite
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    Yeah, I think it wasn't a particularly reputable source, and it did seem odd, as surely it means the gov are forgoing tax revenue!

    Do they want to encourage investing? Or just consumer spending? Probably the latter, as that's mostly in our economy, where as investing would be all over the place (and probably mot much in the UK!) 
  • dunstonhdunstonh Forumite
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    Anyone reckon they will increase the isa limits this year? Or any changes?

    Not a chance they will go up.

    There is no logic whatsoever.  The Government wants people spending.  It doesn't want more rich people putting money aside.

    Read something online about some fund manager suggesting they double it so that people can invest in British companies more (not that I'd do that if they did increase it!)

    This is complete rubbish as most people can invest around £150,000 (each) unwrapped without generating any tax too thanks to CGT allowances and income tax.

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ChilliBobChilliBob Forumite
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    I did think the article I read, some online paper, was a bit mental but I thought I'd see if anyone on here thought similar! 
  • jimjamesjimjames Forumite
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    The most likely direction for the ISA limit is down or even with an overall total as per pensions. Having open ended way of shielding assets from tax is IMHO unlikely to be tolerated by the government when they need to increase tax take
    Remember the saying: if it looks too good to be true it almost certainly is.
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