MSE News Comment - Martin Lewis: Will you really gain from the new NISAs?

Former_MSE_Darryl · 19 March 2014 at 6:04PM

"The Chancellor pulled a rabbit out of his Budget back pocket today, which is probably why he's been sitting uncomfortably for so long..."

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Martin Lewis: Will you really gain from the new NISAs?

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ISA_boy · 19 March 2014 at 7:51PM

Hi all, 1st time poster here.

Quick question regarding this new ISA announced in today's budget. Once 1 July arrives will I still be able to save adhoc cash amounts every month into a Cash Isa with Provider A and also continue paying a regular £100 into a separate Investment Stocks & Shares ISA with Provider B?

I've had my cash Isa since the days of Tessa and Toisa and have a nice cash balance in it. However I only started a separate Stocks & Shares Investment Isa last Sept under a regular monthly contribution of £100. I don't want to have to cash in my investment Isa after only a few months but as that invests in Provider B's own fund, I don't see how I can combine with my Cash Isa under the new NISA

Will I have to ensure that I dont pay into both separate isas from 6 April?
Thx

Mattygroves2 · 19 March 2014 at 8:07PM

ISA_boy wrote: »

Hi all, 1st time poster here.

Quick question regarding this new ISA announced in today's budget. Once 1 July arrives will I still be able to save adhoc cash amounts every month into a Cash Isa with Provider A and also continue paying a regular £100 into a separate Investment Stocks & Shares ISA with Provider B?

I've had my cash Isa since the days of Tessa and Toisa and have a nice cash balance in it. However I only started a separate Stocks & Shares Investment Isa last Sept under a regular monthly contribution of £100. I don't want to have to cash in my investment Isa after only a few months but as that invests in Provider B's own fund, I don't see how I can combine with my Cash Isa under the new NISA

Will I have to ensure that I dont pay into both separate isas from 6 April?
Thx

You can have one cash account and one S+S one next tax year so you'll be able to do what you want to do under the new rules - you'll just be able to put more in and won't be restricted to specific allocations of cash.

zagfles · 19 March 2014 at 8:19PM

See https://www.gov.uk/government/publications/the-new-isa-factsheet

Herbalus · 19 March 2014 at 8:41PM

I'm intrigued as to how your cash ISA provider and your S&S ISA provider will know how much you've deposited into the other, and therefore be able to limit you to the yearly amount across the two.

I guess an S&S ISA already has to do that now, but will the cash ISA providers now have to implement a system of checking how much each depositor has placed in a S&S ISA?

innovate · 19 March 2014 at 8:45PM

They won't know any more than they do today. E.g. I have two providers currently (S&S and cash) who both keep telling me I haven't yet used my allowance for the year even though I know I have.

The providers will report deposits to the HMRC like they do today, and HMRC will pull up those who accidentally or otherwise bust their limit. It will remain the responsibility of the account holder to comply with the ISA limits. Nothing new on that front.

innovate · 19 March 2014 at 8:48PM

I keep looking at the thread title and just cannot figure out why Martin Lewis would ask that question. Reading the article doesn't make me any wiser either.

Jonbvn · 19 March 2014 at 9:17PM

innovate wrote: »

I keep looking at the thread title and just cannot figure out why Martin Lewis would ask that question. Reading the article doesn't make me any wiser either.

What ML is saying is that it is a popular change with little short term cost impact to the exchequer, given the poor cash ISA rates on offer.

In the longer term it is a boon (provided the rules are not changed by the next gov't);)

dtaylor84 · 19 March 2014 at 9:18PM

He seems to be suggesting that because current cash ISA rates are so low, the massive jump from £5,760 to £15,000 isn't likely to save anyone a significant amount of tax. Although he does then point out that the rates will probably rise again in the future.

But it seems to be entirely ignoring the substantial increase in flexibility afforded by allowing transfers from S&S to cash.

Fella · 19 March 2014 at 9:30PM

Trying to be controversial / populist by jumping on the "if the Tories said it there must be a catch" theme that Labour are desperately peddling.

Plainly it's nothing but excellent news for savers. They can only benefit (the amount they benefit will depend on various factors).

gadgetmind · 19 March 2014 at 9:35PM

I've been doing ISAs (nee TESSAs and PEPs) since they came out, but have always done max in shares and very little in cash. Moving forwards, I intend to max S&S NISAs and regard the increase in limits as long overdue.

MSE News Comment - Martin Lewis: Will you really gain from the new NISAs?

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