Will they/won’t they? Hit pension tax relief/tax-free lump sums/annual allowance/lifetime allowance? What about Inheritance Tax and Capital Gains Tax? And although they’ve said they won’t touch the rate of VAT, might they extend it? To the cost of our advice, for instance? One call from an older client last week: ‘What can I do? They’re saying this government is going to take all of our money?’ Here’s the point, the speculation, uncertainty and, in many cases self-serving panic-mongering has been seemingly endless, and has led many to take unnecessary decisions about their finances, to take all of their tax-free cash, to give money away which they can’t really afford to give, to sell buy-to-lets and investments just in case. At on extreme, Liz Truss’s disastrous budget came almost within hours of her appointment. This one has rumbled on far too long, without any pointers except that those with broad shoulders will suffer. But just how broad is broad?
“Reeves backs down on plans to cut ISA limit”
So it looks as though Cash ISAs are safe for the moment (FTM – is that a thing?) Rachel has apparently ‘bowed to pressure’ from the banks and building societies and decided not to reduce the allowance to £4,000 for cash and to keep the £20,000 parity with Stocks and Shares ISAs. Bowed also to common sense, I’d say.
