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  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 25th Nov 15, 2:53 PM
    • 2,324Posts
    • 971Thanks
    Former MSE Helen
    MSE News: Autumn Statement 2015: ISA limits frozen
    • #1
    • 25th Nov 15, 2:53 PM
    MSE News: Autumn Statement 2015: ISA limits frozen 25th Nov 15 at 2:53 PM
    Today's Autumn Statement reveals the ISA, JISA and CTF thresholds will be frozen next year...

    Read the full story:

    Autumn Statement 2015: ISA limits frozen




    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.

Page 1
    • Consumerist
    • By Consumerist 25th Nov 15, 3:00 PM
    • 5,275 Posts
    • 2,639 Thanks
    Consumerist
    • #2
    • 25th Nov 15, 3:00 PM
    • #2
    • 25th Nov 15, 3:00 PM
    My information is that inflation is currently zero so I would say the allowance has been increased in line with inflation.

    My hopes for MSE are being severely dashed, however.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • minislim
    • By minislim 25th Nov 15, 3:47 PM
    • 343 Posts
    • 207 Thanks
    minislim
    • #3
    • 25th Nov 15, 3:47 PM
    • #3
    • 25th Nov 15, 3:47 PM
    wasn't this predicted as from april 16 the first £1000 normal savings interest for basic rate (£500 for higher rate) was now tax free also?

    if anything we've got much more than enough!
    • Oblivion
    • By Oblivion 25th Nov 15, 4:02 PM
    • 19,247 Posts
    • 58,472 Thanks
    Oblivion
    • #4
    • 25th Nov 15, 4:02 PM
    • #4
    • 25th Nov 15, 4:02 PM
    My information is that inflation is currently zero so I would say the allowance has been increased in line with inflation.

    My hopes for MSE are being severely dashed, however.
    Originally posted by Consumerist

    Quite so.


    "Savers hoping to be able to put more cash in an ISA from next April have had their hopes dashed as today's Autumn Statement reveals the annual threshold will remain the same, breaking the tradition of raising it in line with inflation."


    ... and this is from an MSE 'Senior Reporter'. Good grief!
    ... Dave
    Happily retired and enjoying my 13th year of leisure

    I am cleverly disguised as a responsible adult.

    Bring me sunshine in your smile
    • colsten
    • By colsten 25th Nov 15, 4:47 PM
    • 11,259 Posts
    • 10,631 Thanks
    colsten
    • #5
    • 25th Nov 15, 4:47 PM
    • #5
    • 25th Nov 15, 4:47 PM
    The ISA allowance increase is linked to each September's inflation figure, expressed by the Consumer Prices Index (CPI). CPI in September this year was negative, minus 0.1%.

    http://www3.hants.gov.uk/finance/retailpricesindexandconsumerpriceindex.htm

    As ISA allowances are always rounded to the nearest amount that can be divided by 12 to give a full number, it is logical that the Treasury has not reduced the ISA or the JISA allowances for 2016-17.

    Not even Comrade McDonnell would dream of complaining about a missing increase.
    • colsten
    • By colsten 25th Nov 15, 5:26 PM
    • 11,259 Posts
    • 10,631 Thanks
    colsten
    • #6
    • 25th Nov 15, 5:26 PM
    • #6
    • 25th Nov 15, 5:26 PM
    if anything we've got much more than enough!
    Originally posted by minislim
    I absolutely agree.

    Some 2014 stats: the majority of the population has savings of less than £50,000. On average, they have £10,200 in savings. Only 12% have over £50,000, and 19% of the population have no savings at all.

    http://reference.scottishwidows.co.uk/docs/2014_sandi_report.pdf

    The average ISA subscriptions in 2014-15 was £6,064. The average ISA market value is £19,528. Given the allowances of£15,000 and £15,240 in the last and current year, the allowance appears to be more than enough for the average saver.

    The numbers also suggest that not many people would see a £15,240 limit as a problem (aside from those fortunate few, including myself, who could put more into an ISA, but that's besides the point). It's a bit puzzling why MSE would drumroll a non-issue, and do it by ignoring the fact that no ISA allowance increase tradition/promise has actually been broken. This MSE news release smacks of Daily Mail-style mis-reporting, I'm afraid.


    ISA stats: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/456379/ISA_Statistics_Release_August_2015.pdf
    • Consumerist
    • By Consumerist 25th Nov 15, 5:40 PM
    • 5,275 Posts
    • 2,639 Thanks
    Consumerist
    • #7
    • 25th Nov 15, 5:40 PM
    • #7
    • 25th Nov 15, 5:40 PM
    . . . The numbers also suggest that not many people would see a £15,240 limit as a problem
    Originally posted by colsten
    Good point.
    (aside from those fortunate few, including myself, who could put more into an ISA, but that's besides the point)
    It's also showing off.
    .
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • Ashen
    • By Ashen 26th Nov 15, 1:11 AM
    • 534 Posts
    • 412 Thanks
    Ashen
    • #8
    • 26th Nov 15, 1:11 AM
    • #8
    • 26th Nov 15, 1:11 AM
    Looking at those ISA stats, it's interesting how the higher income earners overwhelmingly use stocks and shares ISA's. Speaking as a low earner, perhaps that suggests I should be looking much more into S&S ISAs than I have.
    • masonic
    • By masonic 26th Nov 15, 6:08 AM
    • 12,606 Posts
    • 10,117 Thanks
    masonic
    • #9
    • 26th Nov 15, 6:08 AM
    • #9
    • 26th Nov 15, 6:08 AM
    Looking at those ISA stats, it's interesting how the higher income earners overwhelmingly use stocks and shares ISA's. Speaking as a low earner, perhaps that suggests I should be looking much more into S&S ISAs than I have.
    Originally posted by Ashen
    The general rule of thumb is to have around 6 months living expenses saved in cash as an emergency fund before considering S&S, but holding large amounts of your savings in cash is going to be detrimental over the long term regardless of your income.
    • jimjames
    • By jimjames 26th Nov 15, 11:08 AM
    • 13,286 Posts
    • 12,344 Thanks
    jimjames
    Looking at those ISA stats, it's interesting how the higher income earners overwhelmingly use stocks and shares ISA's. Speaking as a low earner, perhaps that suggests I should be looking much more into S&S ISAs than I have.
    Originally posted by Ashen
    S&S ISAs are not as scary as some seem to think so it's definitely worth investigating once you have sufficient cash savings. Far too many people hold too much cash long term and don't realise how much better they could do with alternatives.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Consumerist
    • By Consumerist 27th Nov 15, 4:15 PM
    • 5,275 Posts
    • 2,639 Thanks
    Consumerist
    S&S ISAs are ok for those who can take the longer view. If, for example, you are expecting to be able to put down a deposit on a house within the next few years then you're probably better in cash.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • colsten
    • By colsten 27th Nov 15, 5:41 PM
    • 11,259 Posts
    • 10,631 Thanks
    colsten
    If, for example, you are expecting to be able to put down a deposit on a house within the next few years then you're probably better in cash.
    Originally posted by Consumerist
    I agree.

    But being "in cash" doesn't mean being in a cash ISA, or that cash ISAs are a smart thing to have these days.
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