Hunt to Overhaul ISAs this autumn

Swipe

I'd like to know where the £100K cap rumour has come from. Is there any credibility to it?

refluxer

Swipe said:

I'd like to know where the £100K cap rumour has come from. Is there any credibility to it?

The idea of a cap was raised when the prospect of an overhaul on ISAs was discussed before the budget this year, IIRC.

GazzaBloom

Hunt is flapping around all over to try and find ways to make the government some more money or get some investment in the UK.

In my opinion, instead of piddling around with pensions and UK savers money he should be offering foreign money significant incentives to invest in the UK over the USA or Europe.

The clocks is running down on the number of days these Tory clowns have left in office though...

coastline

UK is in decline...so what to do ?

The decline of the London stock market | The Spectator

The universe of stock market companies is shrinking: how should investors respond? (schroders.com)

Plenty of reports now about ISA allowance of 30K ?  Link long term UK investing with IHTax might sway some people ( not that many have 20K a year to invest anyway ) . IHT allowance has been frozen for years but property prices are booming. 

 Is there an ISA boost on the way? | MoneyWeek

Savers could get tens of thousands of pounds in tax breaks as Jeremy Hunt looks to reform Isas (inews.co.uk)

wmb194

coastline said:

UK is in decline...so what to do ?

The decline of the London stock market | The Spectator

The universe of stock market companies is shrinking: how should investors respond? (schroders.com)

Plenty of reports now about ISA allowance of 30K ?  Link long term UK investing with IHTax might sway some people ( not that many have 20K a year to invest anyway ) . IHT allowance has been frozen for years but property prices are booming. 

 Is there an ISA boost on the way? | MoneyWeek

Savers could get tens of thousands of pounds in tax breaks as Jeremy Hunt looks to reform Isas (inews.co.uk)

£30k is just the dream of someone at Hargreaves Lansdown.

Swipe

Would you really want to invest the extra £10K in UK stocks?

Altior

For me this is almost sure to be simply pitch rolling for (as yet unknown) changes to ISAs. The ultimate aim will be to reduce the tax avoiding options for those of us outside of the elitists. You don't embed staggered increased taxes on unwrapped investments, and then extend the ability to benefit from tax free options. You diminish or close off those options overall. However, it has to be masked by something that looks to be positive. Selling it as 'investing in UK plc' would be a possibility for sure. 

A quarter brain knows that reducing UK corporation tax instead of increasing it would achieve far far more than anything that could be done meddling with ISAs. 

zagfles

Altior said:

For me this is almost sure to be simply pitch rolling for (as yet unknown) changes to ISAs. The ultimate aim will be to reduce the tax avoiding options for those of us outside of the elitists. You don't embed staggered increased taxes on unwrapped investments, and then extend the ability to benefit from tax free options. You diminish or close off those options overall. However, it has to be masked by something that looks to be positive. Selling it as 'investing in UK plc' would be a possibility for sure. 

A quarter brain knows that reducing UK corporation tax instead of increasing it would achieve far far more than anything that could be done meddling with ISAs. 

Yes I suspect this will be a political move more than anything. At this stage of the parliament and with the polls the way they are, I'm sure they'll be looking for elephant traps to set for Labour. In the same way as Labour set elephant traps for them in 2010 just before the election (for instance even with the massive deficit at the time, raising benefits above inflation, disregarding child maintenance in means tested benefits, and raising the top rate of tax which they knew was counter productive otherwise they'd have done it 12 years previously). So when the Tories reversed them they could make political capital with the usual tropes of Tories of hating single parents, targetting the "sick and disabled", and "looking after their rich mates" etc, so being able to seize some political initiative in opposition (in the end the coalition only partially reversed one of them).

So now, the Tories could create a "UK ISA allowance", wrap it up in Brexit waffle, maybe call it a "Brexit ISA" or similar. Get all patriotic about it, market it with the flag, accuse detractors of being unpatriotic. And when (if) Labour reverse it, claim they're undermining Brexit by stopping incentives to invest in the UK. 

wmb194

Swipe said:

Would you really want to invest the extra £10K in UK stocks?

No restrictions were suggested, just an increase in the allowance to £30k. Besides, as discussed upthread, even if you were restricted to London listed companies you'd still be able to buy shares in ITs that invest abroad.

coastline

Swipe said:

Would you really want to invest the extra £10K in UK stocks?

another view..

A UK ISA will have a ‘profound effect’ on the market, says Premier Miton’s Williams | Trustnet