Limit on value held in Stocks and Shares ISAs

EddieQ

There have been  reports that the Treasury may be considering bringing in  a limit on the value held in stocks and shares ISAs, potentially as part of the future budget.

How likely is such a measure, and if it was introduced  how might it be implemented  ?

ColdIron

EddieQ said:

There have been  reports that the Treasury may be considering bringing in  a limit on the value held in stocks and shares ISAs, potentially as part of the future budget.

Reports ... may be ... considering ... potentially ... future

AKA Another unsubstantiated scare story with no basis in fact in amongst zillions of others

How likely is such a measure

Nobody knows

if it was introduced  how might it be implemented  ?

Nobody knows

HTH

Ayr_Rage

My ISA valuation has varied by tens of thousands in a single day during turbulent times.

I cannot see how any government could possibly limit on value.

Albermarle

EddieQ said:

There have been  reports that the Treasury may be considering bringing in  a limit on the value held in stocks and shares ISAs, potentially as part of the future budget.

How likely is such a measure, and if it was introduced  how might it be implemented  ?

It is just media speculation/scaremongering that is used to sell papers, or for clickbait.

Exodi

Is there any forum rule that covers the circulation of rumour-mill articles?

It feels as if this forum is being inundated with them lately.

Last thing we need is people emptying their pensions/savings accounts/investments/etc because of speculation - like we saw happen earlier this year!

Mark_d

EddieQ said:

There have been  reports that the Treasury may be considering bringing in  a limit on the value held in stocks and shares ISAs, potentially as part of the future budget.

How likely is such a measure, and if it was introduced  how might it be implemented  ?

From time to time there is talk of some kind of wealth tax being introduced.  A lot of people with high potential are already leaving  this country because they get a better deal elsewhere.  For this reason I don't think the government can risks introducing such a tax.

If something like this was introduced, I'd expect the limit to be something like £10m and there would likely be exemptions for people whose ISA already exceed £10m.

masonic

EddieQ said:

There have been  reports that the Treasury may be considering bringing in  a limit on the value held in stocks and shares ISAs, potentially as part of the future budget.

How likely is such a measure, and if it was introduced  how might it be implemented  ?

Are you referring to the early 2023 recommendation by the Resolution Foundation to cap the tax free portion at £100k? https://www.resolutionfoundation.org/publications/isa-isa-baby/

If so, I'm glad you used "reports" rather than "news reports", as two and a half years have since passed. If you do a forum search, you'll probably find a long forum thread about the proposal discussing the issues with it at length.

Edit: Here you go, 12 pages to sink your teeth into - https://forums.moneysavingexpert.com/discussion/6417917/proposed-100k-isa-lifetime-limit/p1

clairec666

Ayr_Rage said:

My ISA valuation has varied by tens of thousands in a single day during turbulent times.

I cannot see how any government could possibly limit on value.

That's the problem - you can't have an upper limit, as the amount will fluctuate. That's why there's a limit on deposits each year instead of a limit on the total.

MDMD

clairec666 said:

Ayr_Rage said:

My ISA valuation has varied by tens of thousands in a single day during turbulent times.

I cannot see how any government could possibly limit on value.

That's the problem - you can't have an upper limit, as the amount will fluctuate. That's why there's a limit on deposits each year instead of a limit on the total.

They used to have a lifetime allowance (i.e. an upper limit) for pensions until the last government abolished it.

masonic

MDMD said:

clairec666 said:

Ayr_Rage said:

My ISA valuation has varied by tens of thousands in a single day during turbulent times.

I cannot see how any government could possibly limit on value.

That's the problem - you can't have an upper limit, as the amount will fluctuate. That's why there's a limit on deposits each year instead of a limit on the total.

They used to have a lifetime allowance (i.e. an upper limit) for pensions until the last government abolished it.

Made much easier by pensions having a definable benefit crystallisation event.

Eyeful

No one can foretell the future. So your guess these things is as good as the next person you ask.