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Post by gramsky on Jan 24, 2023 8:40:56 GMT
Mainstream media is reporting that the Chancellor of the UK is considering scrapping the major benefits of ISA's and limiting people to 100k total allowance. www.youtube.com/watch?v=-QVCX40hAXw |
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Post by bracknellboy on Jan 24, 2023 9:08:47 GMT
Mainstream media is reporting that the Chancellor of the UK is considering scrapping the major benefits of ISA's and limiting people to 100k total allowance. www.youtube.com/watch?v=-QVCX40hAXwIt would not be surprising. I've thought for a quite a while it was a candidate to be a target. At the levels it currently stands at, its a significant "middle class" tax break. While interest rates were on the floor, it probably didn't matter much from a revenue point of view. But with where they are now the picture looks quite different from an HMRC perspective. I think it is more likely however, under this govt., that the annual limit would be significantly lowered than stopping them altogether. The 100k allowance also might be quite difficult to police when taking into account retrospective subscriptions. And I'd hope to god they didn't go down the route of the complexity of pension LTAs.
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pikestaff
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Post by pikestaff on Jan 24, 2023 9:11:09 GMT
Hmm. What we actually have is a report from the Resolution Foundation, a left-leaning think tank, which recommends: - expanding Help to Save, to help poorer households
- paying for this by capping tax free ISA savings at £100,000
Which seem to me like perfectly sound recommendations. But the likelihood of a Tory government acting on them is precisely zero. I live in hope that a future Labour government might do something about this, but time will tell. |
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agent69
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Post by agent69 on Jan 24, 2023 9:20:15 GMT
Mainstream media is reporting that the Chancellor of the UK is considering scrapping the major benefits of ISA's and limiting people to 100k total allowance. www.youtube.com/watch?v=-QVCX40hAXwWhat evidence do you have that the chancellor is considering following the advice of a think tank? To quote from a thread on MSE 'Molly Broome, the economist interviewed is a 20 something year old in the job for less than a year and clearly trying to establish herself on internet and social media, this should set the tone and weight of this think thank proposal.'
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pikestaff
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Post by pikestaff on Jan 24, 2023 9:37:38 GMT
Mainstream media is reporting that the Chancellor of the UK is considering scrapping the major benefits of ISA's and limiting people to 100k total allowance. www.youtube.com/watch?v=-QVCX40hAXwWhat evidence do you have that the chancellor is considering following the advice of a think tank? To quote from a thread on MSE 'Molly Broome, the economist interviewed is a 20 something year old in the job for less than a year and clearly trying to establish herself on internet and social media, this should set the tone and weight of this think thank proposal.'
Unimpressed by the ageist and sexist quote. The tone of the MSE thread as a whole is equally predictable, but that does not make it right. ISAs in their present form are a middle class tax subsidy that pampers the relatively well off at the expense of others more in need of support. If and when a lifetime cap is brought in, consideration would obviously have to be given to transitional rules and, (for stock and shares) to the complexities of CGT, especially now that the govt is lowering CGT exemptions. The easiest way to get rid of those complexities would, of course, be to tax all gains and losses on shares as income.
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travolta
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Post by travolta on Jan 24, 2023 10:04:38 GMT
People do not need financial support ,they need education on howto manage their income .
Why you feel that prudent workers who do not blow their money on beer and skittles suddenly become 'Middle Class' because they have managed to save something and hold on to it ?
Do you feel that 'doing without' should be taxed ?
Piffle.
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pikestaff
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Post by pikestaff on Jan 24, 2023 10:35:46 GMT
...Why you feel that prudent workers who do not blow their money on beer and skittles suddenly become 'Middle Class' because they have managed to save something and hold on to it ?... I don't. I should not have said "middle class tax subsidy". Just "tax subsidy" would have done. Sorry. The fact remains that ISAs in their present form are a grossly distorting tax subsidy that have grown far too big.
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one21
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Post by one21 on Jan 24, 2023 10:41:49 GMT
People do not need financial support ,they need education on howto manage their income . Why you feel that prudent workers who do not blow their money on beer and skittles suddenly become 'Middle Class' because they have managed to save something and hold on to it ? Do you feel that 'doing without' should be taxed ? Piffle. Exactly! How can someone on £35k have the need to visit a food bank, as we hear from various strike actors. Then you have carers (who's duties some of which are most abhorrent) are on something like £18k. We like many others would wait and save instead of borrowing and living on the never never.
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agent69
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Post by agent69 on Jan 24, 2023 10:42:48 GMT
What evidence do you have that the chancellor is considering following the advice of a think tank? To quote from a thread on MSE 'Molly Broome, the economist interviewed is a 20 something year old in the job for less than a year and clearly trying to establish herself on internet and social media, this should set the tone and weight of this think thank proposal.'
Unimpressed by the ageist and sexist quote. The tone of the MSE thread as a whole is equally predictable, but that does not make it right. ISAs in their present form are a middle class tax subsidy that pampers the relatively well off at the expense of others more in need of support. If and when a lifetime cap is brought in, consideration would obviously have to be given to transitional rules and, (for stock and shares) to the complexities of CGT, especially now that the govt is lowering CGT exemptions. The easiest way to get rid of those complexities would, of course, be to tax all gains and losses on shares as income. Why is the age (and inexperience) of the person making the recomendations not relevant?
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Post by bracknellboy on Jan 24, 2023 10:51:47 GMT
People do not need financial support ,they need education on howto manage their income . Why you feel that prudent workers who do not blow their money on beer and skittles suddenly become 'Middle Class' because they have managed to save something and hold on to it ? Do you feel that 'doing without' should be taxed ? Piffle. In this day and age, the term "middle class", if used as I did in my post, tends to be used to as an indicator of relative wealth. Nothing more or less. Turning this on its head, why do you think to still make a distinction between "workers" and "middle class", the former never to cross the line to the latter regardless of their relative wealth? Surely that kind of thinking went out with the ark, unless one is a member of the Socialist Workers Party determined to perpetuate a narrative of 'classes' and class warfare. Which I think I can say with a fair degree of confidence you are not.
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pikestaff
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Post by pikestaff on Jan 24, 2023 11:22:00 GMT
Unimpressed by the ageist and sexist quote. The tone of the MSE thread as a whole is equally predictable, but that does not make it right. ISAs in their present form are a middle class tax subsidy that pampers the relatively well off at the expense of others more in need of support. If and when a lifetime cap is brought in, consideration would obviously have to be given to transitional rules and, (for stock and shares) to the complexities of CGT, especially now that the govt is lowering CGT exemptions. The easiest way to get rid of those complexities would, of course, be to tax all gains and losses on shares as income. Why is the age (and inexperience) of the person making the recomendations not relevant? Age is not completely irrelevant, but tone is important. The poster was obviously seeking to belittle the person by reference to her age, supposed inexperience, and gender, as a means to belittling the report itself. Implicitly he thinks someone in their 20s is not to be taken seriously. As a matter of fact she seems to be 27 or 28 (assuming she finished school at 18) and is not inexperienced. www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwj9hNqmhuD8AhVUnVwKHT_LCqwQFnoECAkQAQ&url=https%3A%2F%2Fuk.linkedin.com%2Fin%2Fmolly-broome-1368a3103&usg=AOvVaw0mOHChPK56vEROKOTG0XWmTurning to the report itself, she's not the only author credited on the Resolution Foundation website. Two co-authors are also credited. They have more senior job titles. Most probably she did the work, under their supervision and guidance. The report itself is here and is worth a read: www.resolutionfoundation.org/app/uploads/2023/01/ISA-ISA-baby.pdf
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keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Jan 24, 2023 11:32:04 GMT
People do not need financial support ,they need education on howto manage their income . Why you feel that prudent workers who do not blow their money on beer and skittles suddenly become 'Middle Class' because they have managed to save something and hold on to it ? Do you feel that 'doing without' should be taxed ? Piffle. I agree. Had I opted out of my company pension I would not have a pension at the moment. But I would have received an extra £650 in Government support this year, plus £250 from my Local council, I would not pay council tax because I would be on benefits. I would get cold weather payments. I would have memories of expensive holidays and meals out. I sometimes wonder who the mugs are. the Average UK pension pot is about £42,000, for those between 55 and retirement it is under £38,000 yes when I get my state pension I believe I will be in the top 10% , but that is the result of 36 years of paying into a pension fund. Currently I hit what the telegraph says is the required income for a moderate lifestyle. currently my investments are all set to grow rather than provide an income, at the moment I have no plan to change that. there is definitely a divide, those who have made reasonable provision for retirement and those who haven't. I have friends who are 50 plus have £10,000 or less in a pension fund, are contributing £50 a month or less yet think that will given them an income of £5,000 a year on retirement. I know at least 2 people who are spending every penny they earn ( in one case over £120,000 a year ), live in rented accommodation and expect that the state will pay it and their other costs when they retire. neither of those groups have made what I see as reasonable provision. Most of my working life I paid 6% of my pay into a pension together with 12% from my employer, those that opted out in effect lost that 12% employers contribution, and of course the tax relief on their contributions.
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james100
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Post by james100 on Jan 24, 2023 11:56:39 GMT
Hmm I would say the key issues include:
1) relatively small % of population on track for anything like a reasonably comfortable retirement
2) relatively small % of population with a workable savings safety net to cover themselves for 3-6 months in the event of illness, redundancy etc
3) relatively small ratio of state pension : average household income
4) relatively high ratio of residential (owner occupied) property wealth : other forms of wealth
5) relatively high cost of state-provided health care provision : average total wealth (yep, owner occupied property) for 65+ age group
6) relatively high costs of entry to residential property & higher education fees
7) relatively high IHT burden if you are still domiciled here when you die
8) relatively low proportion of net tax contributors
9) relatively high proportion of lying tax dodgers and tax pot thieves in the upper layers of our government
Basically the UK government needs to 1) keep its grubby paws on as many rich people as possible; 2) encourage everyone to save as much as possible so they become less reliant on state funds; 3) stop thieving from the pot.
An ISA cap will be the final nail in the coffin for a lot of people, many of whom are eligible for some form of delightful retirement visa in sunnier climes with friendlier tax regimes. Bye bye saving extra for care home costs or rainy days too.
Even Australia which superficially treats CGT as income for tax purposes, gives a 50% discount on any assets held > 12 months. They do/did have a good ideas in the helping people stick aged care fees on their house deeds to reduce state costs and hybrid public/private healthcare provision. Pretty sensible stuff IMHO.
Having paid substantial income tax and invested the remains in the UK stock market I do not expect to be taxed twice on the gains....I will politely withdraw and put my money elsewhere (assets, location or fun).
Disclaimer: I am very negative about the current government tax-dodging and fleecing taxpayer funds in general whilst pretending they are the good guys by taking more money off me.
Portugal's non-habitual residency tax regime is looking seriously attractive right now.
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travolta
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Post by travolta on Jan 24, 2023 12:07:58 GMT
I refer back to the first sentence .
People without means need education : To find a work ethic, a job, birth control and budgeting .
They do NOT need access to credit, subsidies or foodbanks (full of junk and bad cr@P)
The Gov should close down access to credit . Its destroying the ignorant and leaving them with no chance to escape debt.
Yes I read the wordy abstraction . I'm sure she she's carved a nice niche there .
More action less words please.
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hazellend
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Post by hazellend on Jan 24, 2023 14:08:48 GMT
...Why you feel that prudent workers who do not blow their money on beer and skittles suddenly become 'Middle Class' because they have managed to save something and hold on to it ?... I don't. I should not have said "middle class tax subsidy". Just "tax subsidy" would have done. Sorry. The fact remains that ISAs in their present form are a grossly distorting tax subsidy that have grown far too big. Depends if you think financial independence or reliance on the state is more important
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