We do our best to discourage one-off, taxable withdrawals from pensions. If you have to pay tax, it’s much cheaper to borrow even at credit card rates of interest. Those that have no choice or are in theory are non-taxpayers, are always very irritated that the pension company has to pay 30% to HMRC whatever happens; and they then have to go through the hassle of reclaiming it. A very inefficient accounting trick to boost short-term tax receipts? Surely not.
“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.
