If Cash ISAs are ended by Government.

boingy

I doubt they will mess with ISAs very much. Apart from anything else it would not bring in much extra money and would be massively unpopular at a time when they seem to be quite unpopular already!

InvesterJones

boingy said:

I doubt they will mess with ISAs very much. Apart from anything else it would not bring in much extra money and would be massively unpopular at a time when they seem to be quite unpopular already!

It's not about bringing in extra money, at least in the short term. I think the idea is that if you encourage those that are able to save 20K to put some of it in a S&S ISA rather than cash ISA they're more likely to be better off due to the better performance, assuming they didn't need it in the short term. There's also a (forlorn) hope that some of it would be invested in UK stocks - but if that's what they wanted then they probably need to resurrect the doomed British ISA again.

eskbanker

InvesterJones said:
It's not about bringing in extra money, at least in the short term.

Wasn't it claimed in the last budget that even freezing the annual allowance is regarded as generating something like £600m over the parliamentary term, so the implication would presumably be that more radical reform would deliver correspondingly more significant 'gains'?

XzavierWalnut

Thank you for all the replies. Hopefully cash ISAs will not be abolished,
To clarify my position, I cannot transfer my money out of cash ISAs, as I would go over my allowance.

friolento

XzavierWalnut said:

Thank you for all the replies. Hopefully cash ISAs will not be abolished,
To clarify my position, I cannot transfer my money out of cash ISAs, as I would go over my allowance.

How would you go over your allowance?

Martico

XzavierWalnut said:

Thank you for all the replies. Hopefully cash ISAs will not be abolished,
To clarify my position, I cannot transfer my money out of cash ISAs, as I would go over my allowance.

Your annual allowance is only for NEW money put into an ISA. Once in an ISA, it can be transferred between ISAs without affecting the allowance.

friolento

Martico said:

XzavierWalnut said:

Thank you for all the replies. Hopefully cash ISAs will not be abolished,
To clarify my position, I cannot transfer my money out of cash ISAs, as I would go over my allowance.

Your annual allowance is only for NEW money put into an ISA. Once in an ISA, it can be transferred between ISAs without affecting the allowance.

With the proviso that the transfer is carried out by the receiving ISA provider. 

incus432

Electoral suicide . Not going to happen

XzavierWalnut

friolento said:

XzavierWalnut said:

Thank you for all the replies. Hopefully cash ISAs will not be abolished,
To clarify my position, I cannot transfer my money out of cash ISAs, as I would go over my allowance.

How would you go over your allowance?

Maybe the wrong word to use. I meant that if I transferred everything out of my ISAs into a normal savings account, in some years I would earn enough to have to pay tax.

eskbanker

XzavierWalnut said:

friolento said:

XzavierWalnut said:

Thank you for all the replies. Hopefully cash ISAs will not be abolished,
To clarify my position, I cannot transfer my money out of cash ISAs, as I would go over my allowance.

How would you go over your allowance?

Maybe the wrong word to use. I meant that if I transferred everything out of my ISAs into a normal savings account, in some years I would earn enough to have to pay tax.

'Allowance' was the right word to use, but you didn't make it clear that you were referring specifically to your personal savings allowance (and/or starting rate for savings) rather than your annual ISA contribution allowance!  However, if there was to be such a radical change as abolition of cash ISAs, then it's unlikely IMHO that all other tax provisions relating to savings would remain static....