what do people think will happen to isa's next yea

blinko

what do people think will happen to isa's next year ??

do you think the government will actually impose a 1000 limit on next year's isa limits in an attempt to promote savings this year ??

do you think post election we will see base rates move and sharper taxation ??

given the current pension crisis will diminishing of isas be seen as the plug to fill that tax gap ??

just interested in your thoughts on isa's future

dunstonh

do you think the government will actually impose a 1000 limit on next year's isa limits in an attempt to promote savings this year ??

Yes they will impose it in 2006 when its due. They need to fund the new tax free product being launched (CTF).

do you think post election we will see base rates move and sharper taxation ??

Base rates are no longer under the control of the Govt some there really shouldnt be any sudden movement. Longer term expectation is downward.

As far taxation. Do you mean even more than the bucket loads of extra taxation there has been already? of course we will. This is a labour govt after all.

given the current pension crisis will diminishing of isas be seen as the plug to fill that tax gap ??

No. Pensions will still remain the product for the timebeing. With all the legislation changes coming in 2006, its unlikely they will want to play with it too much. I guess there is the possibility of the lifetime savings account getting greater discussion over the coming decade.

Whatever can go in an ISA will be available, if not already, in a pension. Pension gets tax relief, ISA doesnt. The Govt caused the pension crisis so do you really think they are capable of getting us out of it?

deemy2004

what do people think will happen to isa's next year ??

do you think the government will actually impose a 1000 limit on next year's isa limits in an attempt to promote savings this year ??

do you think post election we will see base rates move and sharper taxation ??

given the current pension crisis will diminishing of isas be seen as the plug to fill that tax gap ??

just interested in your thoughts on isa's future

Hi

The ISA limit reduction is not next year, its the year after. i.e. from April 2006.

BASE RATES
Theres probably one more rise to go, then I think interest rates will fall AFTER the election, maybe by 0.75% over a period of six months from their peak. After that unknown, a lot depends on inflation, if its under control then they could drift lower. But I would be betting on rates rising some time during the 2nd half of 2006.

Taxes will have to go UP !, Mr Brown is running a big budget deficit that needs to be financed, also he's over-estimating tax revenue growth as the economy is obviously slowing down and will continue to do so (which is the reason why rates will be cut).

Theres nothing new to suggest what will happen to ISA's. But I think they may change their minds with regards the £1k drop in the ISa rate for the year 2007/08 onwards or introduce a new investment vehicle similar to the ISA's

isasmurf

do you think the government will actually impose a 1000 limit on next year's isa limits in an attempt to promote savings this year ??

That's an interesting one, looking at it one way it doesn't take a genius to work out that Cash ISAs are now the most expensive part of the ISA to the Government, so if they want to limit this cost then they will go ahead and revert back to the orginally intended limits.  However, looking at it another way, the Inland Revenue's own figures show that out of the 7.5 million people investing in Cash ISAs in 2001/02 (the latest figures available), 6 million of them put in more than £1000.  With a election  to be held before mid 2006, do the Government really want to upset this many people?  I don't think they do, I'm expecting an annoucement either next month(or whenever it is) in the Pre-budget report, or in the budget next year to say that the current limits remain.  With the insurance part being included within the Stocks & Shares limit next year, the limit goes up to £4,000 for Stocks & Shares.  This doesn't really help the people the Government want to save, so it's possible they could reduce this back down to £3,000.

do you think post election we will see base rates move and sharper taxation ??

What's this got to do with the future of isas?

given the current pension crisis will diminishing of isas be seen as the plug to fill that tax gap ??

I doubt it.  ISAs cost the government about £1bn a year, that's a long way short of the estimated £57bn 'tax gap'.

But I think they may change their minds with regards the £1k drop in the ISa rate for the year 2007/08 onwards or introduce a new investment vehicle similar to the ISA's

Any new investment vehicle in 2007/08 will be in direct competition to ISAs, as ISAs are guaranteed until 2009. It will also be an admission that ISAs aren't working.  I don't think the Government will want any of that, which is probably why they have let the so-called Sandler products into an ISA.  I reckon that we may see some drastic changes to the ISA from 2009, but not before.

Robert_Sterling_3

what do people think will happen to isa's next year ??

[Move]Nothing will happen to them next year i.e.  In 2005.     Nothing will happen to them in the next financial year  2005-2006.   It is probable that in 2006-2007 the mini cash ISA amount allowed per annum will be £1000.  [/move]

deemy2004

I doubt it.  ISAs cost the government about £1bn a year, that's a long way short of the estimated £57bn 'tax gap'.

Any new investment vehicle in 2007/08 will be in direct competition to ISAs, as ISAs are guaranteed until 2009. It will also be an admission that ISAs aren't working.  I don't think the Government will want any of that, which is probably why they have let the so-called Sandler products into an ISA.  I reckon that we may see some drastic changes to the ISA from 2009, but not before.

I hope so! i.e. they startup something similar to the cash-isa from 2009.