Reeves' ISA review

eskbanker

£20K limit stays but £8K of it must be S&S, although over-65s have the full £20K for cash.

SnowMan

In the speech:

Cash ISA annual contribution limit 12K. 

Doesn't apply to over 65s (who retain full 20K limit)

Overall 20K allowance remains subject to the cash ISA limit. 

Johntea

April 2027 too so next year should be unaffected

westv

Johntea said:

April 2027 too so next year should be unaffected

I'll be 64 then so just slip under by a year.
Does the Chancellor really think the £8k will all be invested only in the UK Stock market?

jak22

Presumably there are details published, is it 65 and over, is it for the first tax year when 65 or anytime after turning 65 for example.

Another complication for banks building society to administer beyond the unwanted reduction in cash ISA allowance

Darnhall123

The_Green_Hornet said:

Over 65s to keep full 20k cash allowance.

And the change from £20k to £12k into a cash ISA doesn’t kick in till April 2027. Result. 

EssexHebridean

westv said:

Johntea said:

April 2027 too so next year should be unaffected

I'll be 64 then so just slip under by a year.
Does the Chancellor really think the £8k will all be invested only in the UK Stock market?

Of course not - but the truth is that this isn't what it's really about, is it - it's a sneaky way of raising more cash through interest taxation. 

SVaz

Good job my Wife has the starter savings rate then as from 2027 she’ll be shifting £16k a year from her Sipp into her cash ISA, although £4k can go into S+S I suppose.   

I wonder if they will time limit holding cash in an S+ S ?  

jak22

It's a pointless and unnecessary change, and just complicates ISA even more  - many are already fairly confused by ISA rules and individual bank's T&Cs judging by posts 

It won't raise much revenue but just reduces choice - tax has already been paid on the contributions - the amount of tax lost by ISA interest being tax free is just a fraction of that already paid.

Alpine_Star

The_Green_Hornet said:

Over 65s to keep full 20k cash allowance.

Yes, very sensible this and just goes to show that many of those who max out their allowance do so because of receipts of lump sums rather than from high disposable incomes.