Author Topic: New ISA restrictions are being considered  (Read 2691 times)

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The Prophet

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New ISA restrictions are being considered
« on: February 29, 2012, 09:03:31 am »
A think tank called the Social Market Foundation is proposing a cap on the maximum that can held inside an ISA tax-free wrapper says Merryn Somerset Webb in Moneyweek.
It is proposing to cap all Isas at £15,000 - not new contributions but in total and retrospectively.

The idea is that those with savings in excess of the £15,000 limit should be encouraged to consume and not subsidised to save.
It is thought that increased spending will boost growth and help Britain repay its debts.

At the moment 23 million people have Isas and more than 67% of these are above the proposed £15,000 threshold.
Any proposal to tax existing Isas will effectively be a wealth tax and an administrative nightmare for both individuals and tax inspectors.

Let us all hope this report slips under the Chancellor's radar!