The rumour/leak engine seems pretty focused on an ‘attack’ on Cash ISAs. Not those who already held, but on a limit to future contributions to only £4,000 of the total £20,000 allowance. The supposed logic is that this will encourage investment in stocks and shares and discourage savers from ‘hoarding’ £ms in bank deposits and leaving funds there to ‘lanquish’. If it doesn’t, as it won’t, redirect the money to stockmarket investments, more tax will be paid on the interest, something I’m sure the Treasury has factored in. It’s nonsense to suppose that those whose first priority is to keep their money safe will suddenly become investors. In the minds of most, losing a bit of interest to tax is preferable to seeing their hard-earned go down in value. Most will not, and probably should not, invest without, you’ve guessed it, proper advice. And, of course, ISAs will become still more complicated, and so akin to pensions in the minds of most.
“Trade war: Stock markets rally as Trump rows back on Fed and China threats”
Yet another reminder, should one be needed, of how quickly things can and will change. A nod and a wink in the right direction from himself and/ or an underling can provide the solace the money men crave and turn a plummet into, if not a soar at this stage, then certainly a bounce.
