Finally... ISA increase... sort of

mebu60

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?

When ISAs were launched in 1999 there were mini and maxi versions, £7k max, cash (originally proposed as being offered by supermarkets) £3k, life insurance £1k and S&S £7k plus TOISA (TESSA only) £9k. The mini and maxi labels were pointless. This was pointed out but took 10 years to lose. The supermarkets didn't want to play and no-one cared about the life insurance ISA. 

I agree with @Alexland . I don't think the UKISA will ever see the light of day. 

silvercue

friolento said:

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.

That doesn't mean that cap should stay the same. 

silvercue

Hoenir said:

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

Yes, agree.  

mebu60

Hoenir said:

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

2017 (10 chars)

boingy

friolento said:

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.

It's true that most people can't do that every year but there are plenty of ordinary folks who might find themselves with that sort of sum a few times in their life. Maybe a redundancy, an inheritance, a divorce settlement or a pension lump sum. With current interest rates the tax free thing is more important than it was a couple of years ago. 

boingy

And I must admit I had completely forgotten about the weird life insurance one!

GeoffTF

Alexland said:

I doubt VLS funds are popular because of their UK bias probably just general good Vanguard marketing with many investors probably not even aware of the UK bias. If the VLS funds didn't have a UK bias they would probably sell even better as the performance record would have been more impressive.

Vanguard has made it clear on more than one occasion that the UK bias is there to boost sales. The people who bought VLS did not know that the UK stock market would do badly when they bought the funds. Vanguard has already reduced the UK bias on one occasion. I expect that they would reduce it again if they thought it would boost sales. It may seem strange to globalists here, but there are people who fear that nasty foreigners will confiscate overseas investments, or at least feel more comfortable with a big slice of their investments at home. Nonetheless, most VLS investors probably do not care about the UK bias.

Kaizen917

Im quite disappointed to hear this UK ISA being announced while at the same time keeping quiet about the LISA. Its almost like the government is just trying to roll us from one half-baked thing to another.

older_and_no_wiser

Swipe said:

older_and_no_wiser said:

I think there would be a lot of people who would invest in this rather than a regular ISA if it was marketed well. Obviously nobody on this forum and those who are knowledgeable investors. However, a large percentage of the population aren't too clued up and the lure of a UK investment would be tempting. Maybe for the same reasons that Vanguard LifeStrategy funds are popular because they have UK bias.

I disagree, apart from moving my inherited Lloyds shares into it, it doesn't really interest me unless I can add funds to it rather than company shares.

Exactly my point. You are in this forum so you know better.

Alexland

GeoffTF said:

Vanguard has made it clear on more than one occasion that the UK bias is there to boost sales. 

That may have been their intent but I haven't seen anything to suggest it did actually drive sales. Many of them seem to think they were buying a passive tracker fund!