The total funds invested in ISA'st today are just short of £600bn, per the latsst government figures.
[https://www.gov.uk/government/uploads/system/uploads/attachment_data/fil....
This must be the lowest hanging fruit for addotional tax grabs. A stroke of the pen scrapping the tax exemptions for ISAs would raise probably £3bn+.income tax and , depending how the legislation might be worded, very significant CGT as well-except that the impact on markets could wipe out many unrealised gains first.
Any views
Replies (9)
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I think McConnell is unlikely to wipe out the tax free status of ISAs for a number of reasons, the most pressing of which is that he's not the chancellor and likely never will be.
Other reasons include it being unfair, unfeasible and against the party manifesto since ISAs are targeted at people with small levels of savings.
For most of the people who have ISAs, the government would have to wipe out the personal savings nil rate band to bring the interest into tax at all which again, as a tax break that aids lower income families, is somewhat protected by their manifesto.
I've had a think and I reckon everyone would hardly be affected, it's a stupid idea. How did you work out the potential revenue of £3bn?
Isn't it all somewhat academic? If we ever see a Corbyn/McConnell government the nation will be right royally f u c k e d, in any event.
Surely there is some more mileage in shafting the soft-bellied small business owner and 2nd home owner? No protests, no campaigns, just meek acquiescence. Easy.