ISA reform update

masonic

https://forums.moneysavingexpert.com/discussion/comment/82045509#Comment_82045509

Hardly a tax grab if it really only takes a token toe-dip into the world of investments to maintain the status quo. It'll barely raise anything.

If IFA magazine have this right, then it is about the gentlest nudge possible with zero consequences for anyone willing to put a few quid in a tracker fund alongside the cash-like holdings.

Alfredi

Presumably I can still buy short dated gilts in my S&S ISA without paying income tax. It seems wasteful to deposit with a bank covered by a government guarantee when I can buy gilts and get the guarantee directly, and buy and sell them instantly.

masonic

https://forums.moneysavingexpert.com/discussion/comment/82045539#Comment_82045539

Gilts have not been mentioned as an investment type that would be subject to a tax charge. Even with the stricter rules of the past, gilts bought with >5 years to maturity were ok to hold.

friolento

https://forums.moneysavingexpert.com/discussion/comment/82045509#Comment_82045509

Hmh. Not so simple then.

I really hope someone stops the implementation of these complexities.

Gsaver1

At present I have 25% in four funds. I hold the rest in a STMMF. I sell some of my STMMF each month and buy into my four funds. Is it time for me to sell my STMMF and transfer it to a Cash ISA and transfer the same amount into my S&S ISA each month to buy into my four funds?

masonic

https://forums.moneysavingexpert.com/discussion/comment/82045564#Comment_82045564

Based on the common interpretation of this latest statement, you'd be fine continuing to do that as you can have "some" STMMF without a tax charge as long as it isn't "all" STMMF. But it would be worth reviewing when more of the detail is known. The whole thing could be axed or delayed yet.