PSA and ISA allowance- time for gov change?

CaptainWales

Anybody else think that if the government really wants to encourage saving and lower inflation they should up the current PSA and ISA allowance? 

Doctor_Who

CaptainWales said:

Anybody else think that if the government really wants to encourage saving and lower inflation they should up the current PSA and ISA allowance? 

It would be nice, but I can't see it happening. The UK already has generous tax allowances for savings.

Bigwheels1111

They need the tax to bail out the country.

dunstonh

CaptainWales said:

Anybody else think that if the government really wants to encourage saving and lower inflation they should up the current PSA and ISA allowance? 

You are asking if the same Government that just lowered the dividend allowance and capital gains tax allowance and increased the dividend tax to target those with wealth if they should give tax breaks to those with wealth.

Albermarle

Doctor_Who said:

CaptainWales said:

Anybody else think that if the government really wants to encourage saving and lower inflation they should up the current PSA and ISA allowance? 

It would be nice, but I can't see it happening. The UK already has generous tax allowances for savings.

As above. The average German or Irishman would be over the moon to have the savings interest tax breaks we have in the UK.

Yorkie006

I'd prefer an increase of the personal allowance - that would benefit the lower earners more than increase in PSA/ISA limit - increasing those would only benefit the people who don't really need the extra money. Let's face it, most people these days don't have £20k to save anyway...

mebu60

If they were to amend the ISA allowance it would more likely be reduced than increased. 

Eirambler

Savings, by their nature, help to reduce inflation. So, if inflation is still an issue by the time the budget comes around, it is absolutely possible that they may amend the ISA limit or £1,000 savings tax threshold to encourage people to save more.

It would also endear the government to pretty much the only voting bloc they still have on side - retired people who read right wing newspapers.

Eirambler

Albermarle said:

Doctor_Who said:

CaptainWales said:

Anybody else think that if the government really wants to encourage saving and lower inflation they should up the current PSA and ISA allowance? 

It would be nice, but I can't see it happening. The UK already has generous tax allowances for savings.

As above. The average German or Irishman would be over the moon to have the savings interest tax breaks we have in the UK.

This is true. All savings in Ireland are taxed at 33%. No tax free allowance before it kicks in either. Even children's accounts are fully taxed. The top easy access savings pay less than 0.25% - before tax. Fixed savings generally pay about 1% before tax (so 0.67% in reality). The Irish equivalent of Premium Bonds (known as prize bonds) has a tax free prize rate of 0.35%.

ZeroSum

The £20k ISA allowance is high enough (and probably raised too high when first went to £20k)

artyboy

dunstonh said:

CaptainWales said:

Anybody else think that if the government really wants to encourage saving and lower inflation they should up the current PSA and ISA allowance? 

You are asking if the same Government that just butchered the dividend allowance and capital gains tax allowance and increased the dividend tax to target those with wealth if they should give tax breaks to those with wealth.

Fixed that for you... and the next 2 tax years will be the first time in my life I've ever needed to make use of what remains of the CGT allowance. C'est la vie