Hunt to Overhaul ISAs this autumn

boingy

Lead article in the FT today No solid details apart from an intent to simplify them and encourage more share ownership in ISAs.

The article is behind a paywall but the Beeb handily have the front page in their "what the papers say" section:

_131233972_pink_front1_20230923_100-nc.png.webp (976×1576) (bbci.co.uk)

Sea_Shell

I'd be interested in what they plan to do with IFISA's as I have a few quid in Loanpad, and have been very happy with them so far.   

Swipe

At least it's not being cut.

ColdIron

I think if you google the article heading you can bypass the paywall, try the following search

financial times Hunt plans Isa overhaul to boost share ownership

If not ...

• One radical option being considered is an additional Isa allowance for investing in UK companies, according to these people, although this work is said to be at a preliminary stage.
• Other ideas discussed include enabling cash savings and stock market investments to be held within a single Isa, rather than separately as they are now, making it easier for millions of people to save and invest tax-efficiently for the long term

ColdIron

Sea_Shell said:

I'd be interested in what they plan to do with IFISA's as I have a few quid in Loanpad, and have been very happy with them so far.   

• Industry executives involved in the talks agree reform of the “over-complicated” Isa landscape is needed, with questions raised over the future of the Innovative Finance Isa — which allows investment in peer-to-peer loans but has seen very low take-up — and the Lifetime Isa for under-40s — criticised for being too complex.

boingy

From an end user viewpoint the best simplification would be to allow shares and cash to be held in the same ISA.  However, I imagine ISA providers might be less keen.

As long as they don't cut the overall allowance I don't really mind!

Sea_Shell

ColdIron said:

Sea_Shell said:

I'd be interested in what they plan to do with IFISA's as I have a few quid in Loanpad, and have been very happy with them so far.   

• Industry executives involved in the talks agree reform of the “over-complicated” Isa landscape is needed, with questions raised over the future of the Innovative Finance Isa — which allows investment in peer-to-peer loans but has seen very low take-up — and the Lifetime Isa for under-40s — criticised for being too complex.

Yes, I'd read that bit.     So be interesting what this "future" of IFISAs will look like.  

Swipe

Not to be pedantic, but you can already hold shares and cash in the same ISA.

friolento

I am very happy with a single S&S ISA but the last thing I would want is to have just one ISA overall. I like to have a ladder of fixed cash ISAs with different maturity dates, sitting alongside my long term S&S ISAs. With that approach, I have much more choice of different interest rates. I’d be unhappy if I had to settle for cash rates offered by the likes of HL or AJ Bell. Equally, I wouldn’t want to have my investments with one of the cash ISA providers. Transfers of cash ISAs are straight forward and quick, whilst S&S ISA transfers can be a nightmare, and are usually quite unnecessary.

It would also be interesting to see how Hunt would handle the £85k FSCS limit in the single ISA scenario. Is he going to offer US-style unlimited protection?

Sea_Shell

Is he going to just meddle, when no meddling is actually needed, or wanted ☹️

ColdIron

friolento said:

I am very happy with a single S&S ISA but the last thing I would want is to have just one ISA overall

I don't think that is what is being suggested, i.e. a single ISA account full stop

Instead I read it as enabling access to cash ISA rates from commercial providers within an investment account such as HL's Active Saving and vice versa