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.
“Cash ISA allowance could be cut this month”
Our mantra has long been ’straightforward advice that you can understand’. That can mean trying to simplify the many complex products and options with which the world of finance tries to befuddle its target audience.
