If Cash ISAs are ended by Government.

FIREDreamer

incus432 said:

Electoral suicide . Not going to happen

They are dead and buried already though.

SVaz

If, in the vanishingly rare chance that they do this,  there is a simple workaround - transfer into a Stocks and shares ISA and put the cash into a Short term money market fund.   They track the Banks own overnight rates. 

Notepad_Phil

SVaz said:

If, in the vanishingly rare chance that they do this,  there is a simple workaround - transfer into a Stocks and shares ISA and put the cash into a Short term money market fund.   They track the Banks own overnight rates. 

I don't remember this myself, but there was mention on another post that in the early days of S&S ISAs that such funds were not allowed to be held within an ISA, they had to be at least some percentage of equities. So I'd expect something like that happening again in the very remote chance of cash ISAs ending. 

SVaz

My Wife will not be amused if they do that . 

She has just opened both a Trading 212 cash isa and AJ Bell s&s isa and bought a Royal London Short term MM fund.   She is planning to have investments as well, but not for a couple of years,  until her ‘cash’ pot is big enough for a few years income. 

onomatopoeia99

Notepad_Phil said:

SVaz said:

If, in the vanishingly rare chance that they do this,  there is a simple workaround - transfer into a Stocks and shares ISA and put the cash into a Short term money market fund.   They track the Banks own overnight rates. 

I don't remember this myself, but there was mention on another post that in the early days of S&S ISAs that such funds were not allowed to be held within an ISA, they had to be at least some percentage of equities. So I'd expect something like that happening again in the very remote chance of cash ISAs ending. 

They'd also have to stop interest being paid on uninvested cash in an S&S ISA.  

While I've benefited from the £20k limit this year due to an unexpected capital gain (first time and last time I am certain), I've also long felt it's way too high as what person on an average wage raising a family can save £20k/year? 

ZeroSum

onomatopoeia99 said:

Notepad_Phil said:

SVaz said:

If, in the vanishingly rare chance that they do this,  there is a simple workaround - transfer into a Stocks and shares ISA and put the cash into a Short term money market fund.   They track the Banks own overnight rates. 

I don't remember this myself, but there was mention on another post that in the early days of S&S ISAs that such funds were not allowed to be held within an ISA, they had to be at least some percentage of equities. So I'd expect something like that happening again in the very remote chance of cash ISAs ending. 

They'd also have to stop interest being paid on uninvested cash in an S&S ISA.  

While I've benefited from the £20k limit this year due to an unexpected capital gain (first time and last time I am certain), I've also long felt it's way too high as what person on an average wage raising a family can save £20k/year? 

Personally can't see ISAs being messed with as there's too many complications. 
All that'll happen is the £20k will be frozen for quite a while as its more than enough for vast majority of the population. Raising it only benefits the better off (hence why it's was whacked up by the tories)

Stubod

Don't understand it really, they could easily reduce the maximum amount you can save in an ISA, (or stop them altogether?). 

This would probably not be as controversial as things like pensioners winter fuel allowance, and as above only really effects those that are better off? In reality not sure how much extra tax it would raise though?

jimexbox

Stubod said:

Don't understand it really, they could easily reduce the maximum amount you can save in an ISA, (or stop them altogether?). 

This would probably not be as controversial as things like pensioners winter fuel allowance, and as above only really effects those that are better off? In reality not sure how much extra tax it would raise though?

Many people use ISA's when they inherit money, or part of their retirement plan. Nothing to do with being better off, rather savings for the future, than wasting money on a multitude of crap.

ZeroSum

Stubod said:

Don't understand it really, they could easily reduce the maximum amount you can save in an ISA, (or stop them altogether?). 

This would probably not be as controversial as things like pensioners winter fuel allowance, and as above only really effects those that are better off? In reality not sure how much extra tax it would raise though?

Abolishing ISAs all together would be massively controversial. Reducing the limit to say £15k wouldn't be too bad as it would only really affect the better off. Similar with pushing people away from cash to S&S ISAs as S&S are only really used by the middle classes.

friolento

What is the reason for some forumites supporting the partial or full abolition of the £20k annual limit (which AFAIK has already been frozen until 2030)? 

If the thinking is that most people can only dream of being able to save that much a year, then surely it would not yield any noteworthy amount of tax for the Treasury? Particularly in a falling interest rate environment. So what would be the point of depriving people, especially older ones who prefer cash savings, or younger ones saving e.g. for a deposit, from getting a bit of extra income, and to discourage people from having a cash reserve?