Reeves' ISA review

george4064

Will be interesting to see what comes of this. Potentially restricting the amount of cash one can hold in an ISA or reducing the cash ISA allowance to just £4k.

I think its important to try demystify some of the (often incorrect) concerns about investing, so that these potential change(s) actually encourage more people to invest rather than just save outside an ISA.

http://archive.today/hlft2 

friolento

There is nothing to demystify if you need your money in the next 1-5 years, e.g. for buying a house or for topping up your pension or for whatever.

intalex

Sure, just add some guarantees (or insurance) to cover any negative or sub-inflationary investment growth, and we're good to go...

vacheron

I can almost hear the thousands of scammers rubbing their hands together in glee at the thought of tens, if not hundreds of thousands of inexperienced investors who may now feel compelled to invest for the first time beacuse their govenment have deliberately nudged them in that direction, implying that it must be in their best interests to do so, despite having no idea how, or where, to invest.   

ColdIron

Cash and investments do different jobs so while one would be suitable for one person, the other would be quite unsuitable for other people

If the government were to nudge (or worse still, actively recommend) investing over cash without discrimination or advisory services like TPAS, I can see it ending in tears. But it would be a slow burning fuse and may not become apparent for many years (i.e. when they are long gone). But let's remember the cash allowance was half the full allowance until 2017

I can imagine much intergenerational grizzling though. Those 'rich' old people getting better breaks and opportunities than the young, and they would be right. The old could suffer too, many might transfer tranches of their investments into cash as part of a de-risking strategy and they would need to tighten up that gaping hole. It was not allowed prior to 2014

PS I applaud your use of the apostrophe, its much misused on the ISA's board

friolento

vacheron said:

I can almost hear the thousands of scammers rubbing their hands together in glee at the thought of tens, if not hundreds of thousands of inexperienced investors who may now feel compelled to invest for the first time beacuse their govenment have deliberately nudged them in that direction, implying that it must be in their best interests to do so, despite having no idea how, or where, to invest.   

I hadn’t thought of that but you are no doubt spot on 😭

VNX

george4064 said:

Will be interesting to see what comes of this. Potentially restricting the amount of cash one can hold in an ISA or reducing the cash ISA allowance to just £4k.

I think its important to try demystify some of the (often incorrect) concerns about investing, so that these potential change(s) actually encourage more people to invest rather than just save outside an ISA.

http://archive.today/hlft2 

Oh I didn’t know Rachael Reeves was looking to make any changes to ISAs

MeteredOut

My take: the media and the city (and the general populace) are being played. Reeves knows (they'll have done research) that a significant percentage of people would rather move their cash into tax-bearing accounts rather than risk it in S&S ISAs, meaning additional tax revenue for the exchange, but they can claim the change is to benefit the economy, not another stealth tax.

MA260

My take, is that reducing the cash isa allowance might encourage a small amount of extra money going into stocks and shares isas. It may encourage younger savers to invest a bit more on stock markets. Apart from that it is more likely to result in more money being put into pensions and claiming 25/40% tax relief, costing the treasury more short term. 

Albermarle

VNX said:

george4064 said:

Will be interesting to see what comes of this. Potentially restricting the amount of cash one can hold in an ISA or reducing the cash ISA allowance to just £4k.

I think its important to try demystify some of the (often incorrect) concerns about investing, so that these potential change(s) actually encourage more people to invest rather than just save outside an ISA.

http://archive.today/hlft2 

Oh I didn’t know Rachael Reeves was looking to make any changes to ISAs

There has been speculation about it for many months, and there does seem to be some kind of internal review, but quite possibly it will not come to anything. Or it might, nobody knows.

masonic

Albermarle said:

VNX said:

george4064 said:

Will be interesting to see what comes of this. Potentially restricting the amount of cash one can hold in an ISA or reducing the cash ISA allowance to just £4k.

I think its important to try demystify some of the (often incorrect) concerns about investing, so that these potential change(s) actually encourage more people to invest rather than just save outside an ISA.

http://archive.today/hlft2 

Oh I didn’t know Rachael Reeves was looking to make any changes to ISAs

There has been speculation about it for many months, and there does seem to be some kind of internal review, but quite possibly it will not come to anything. Or it might, nobody knows.

I think I might just detect a faint hint of irony in VNX's words