MSE News: Autumn Statement 2015: ISA limits frozen
Former_MSE_Helen
Posts: 2,382 Forumite
Today's Autumn Statement reveals the ISA, JISA and CTF thresholds will be frozen next year...
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Autumn Statement 2015: ISA limits frozen
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Autumn Statement 2015: ISA limits frozen
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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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.0 -
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!0 -
Consumerist wrote: »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.
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!... DaveHappily retired and enjoying my 14th year of leisureI am cleverly disguised as a responsible adult.Bring me sunshine in your smile0 -
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.0 -
if anything we've got much more than enough!
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.pdf0 -
. . . 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)
.Warning: In the kingdom of the blind, the one-eyed man is king.0 -
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.0
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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.0
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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.
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.0 -
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.0
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