Finally... ISA increase... sort of

Alexland

boingy said:
If it was easy they would already have reached a consensus.

I expect ISA Managers have already reached a consensus on this pointless ISA.
https://portfolio-adviser.com/platforms-call-for-uk-government-to-resist-launching-retrograde-british-isas/
This government is so dead.

mebu60

ColdIron said:

mebu60 said:

silvercue said:

I like this idea and if it is available this coming FY I will add £5k.   Will be using the standard £20K limit on 6th April anyway.  

I'd be interested to know what proportion of the MPs' pension fund is invested in 'the UK' (when they have defined what exactly that covers). 

It's a final salary DB pension so there is no pot of money like a DC pension

The individual MP won't have a pot but my DB pension is paid out of a pension fund / pot that is invested and overseen by trustees. 

friolento

hallmark said:

What were the "pension reforms"?

to do with how pension providers report where they invest, and to try and make them invest more in the UK rather than in diversified global instruments.

Fortune82

I'm still waiting for the government to make good on their promise to allow fractional shareholdings in ISAs so we can drip in to buy high priced US holdings. 

boingy

Alexland said:

I expect ISA Managers have already reached a consensus on this pointless ISA.

I've got to ask. Did you think the same about PEPs, ISAs, HTP ISAs, LISAs etc?

eskbanker

Fortune82 said:

I'm still waiting for the government to make good on their promise to allow fractional shareholdings in ISAs so we can drip in to buy high priced US holdings. 

Wasn't that another one of these partially thought out proposals that's gone to consultation, rather than being a fully-formed deliverable promise as such?

Hoenir

When was the ISA limit fixed at £20k ?  About time it was raised. 

poseidon1

EthicsGradient said:

The Financial Times commentary on this is quite funny - if you don't have a subscription, search for the article title, which is 

"The UK ISA announcement: pretty much meaningless"

and that gets you past the paywall. Includes 2 graphs titled "!!!!!!-covering graph" (note for reader: apparently the FT can use ruder words for their graph titles than MSE allows. Apologies to the very-easily-offended). They note

There’s a smidge more clarity in HM Treasury’s press release, which — as well as accidentally calling today’s fiscal event the “Autumn Statement” —drops the e-bomb:

"Pensions and savings reforms, including the introduction of a new UK ISA allowing an additional £5,000 annual investment in UK equities tax-free and new British Savings Bonds offering savers a guaranteed rate for 3 years, will deliver better returns for savers. "
...
There is much to consider, but also little:
 — from an investor perspective, the UK ISA is likely to be just a tax bung to high earners, rather than a materially reshaping the domestic retail market for UK assets
 — from a UK market perspective, we have no way of knowing how much investment it will unlock, and we don’t know what assets the money will go to

Thanks for the tip to bypass FT's paywall to access this highly amusing article of this 'non event'.

Particularly appreciated the graphs showing this proposed ISA likely to be accessed by only a tiny minority of the  population in the high earner category, who already comfortably contribute the current £20k maximum. So indeed  another bung for the wealthy.

For those who are no where near the max contribution limit, nothing stops them investing 100% UK  should they so desire. What would be appealing to that cohort is for the Brit ISA to attract  a LISA style basic rate tax incentive, encouraging longterm holding/accumulation of the qualifying  underlying stocks ( something akin to a mini sipp without the tax charge on exit).

If the Brit Isa happens ( emphasis on 'if'), and UK debt instruments are included, I will use to increase current holdings of  retail corporate bonds and/ or perhaps government gilts if an appealing auction appears on the horizon. 

Alexland

boingy said:

Alexland said:

I expect ISA Managers have already reached a consensus on this pointless ISA.

I've got to ask. Did you think the same about PEPs, ISAs, HTP ISAs, LISAs etc?

No I supported the launch of all those products (although PEP launched before I was old enough) although feel LISAs need tweaking for first time buyers who incur penalties.
I did feel a similar way to a lesser extent about IFISAs and the original £1k insurance Mini ISA allowance that was scrapped. I particularly liked the CAT quality standard on the original ISAs.
Some ideas are good others are bad.

friolento

Hoenir said:

When was the ISA limit fixed at £20k ?  About time it was raised. 

The vast majority of people can't even dream of putting £20k aside each year, let alone needing a £20k+ tax-free savings vehicle.