I honestly wish she went instead of Starmer. Clueless.
ToddlerOffPerks on
Need more money for migrant shelters on the double.
MerakiBridge on
A tax within a tax free wrapper. I wish Rachel could just go back to playing chess.
Reach_Reclaimer on
Sorry but am I just misunderstanding, why would your have any cash left over in your stocks and shares? Don’t most people put it into a fund
BignickdiggerXL on
Anything to keep the triple lock going and as burnham has said he will keep it I guess we can expect more of the same under him
Dissidant on
Not really news, passed last year they are legally required to proceed with it regardless of the political theatre
billy_tables on
are there many people getting cash interest in s&s instead of a cash isa? It kind of feels like one of those revenue raisers where people will realise they’re doing something odd and move it (or maybe that’s the point?)
Jaded_Strain_3753 on
The first time buyer ISA looks good. I worry that the 22% tax will just punish the financial unaware rather than incentivise them in the way intended
Ben13921 on
Another complexity added to an insanely complex tax system and we wonder why people disengage with financial education
dragoneggboy22 on
Brits are really risk averse when it comes to holding shares for personal savings – I think this is good to encourage more investment in the stock market.
Holding cash in an S&S ISA would mainly be with an intention to circumvent the 12k cap, so seems a reasonable step to take to prevent it
PraiseTheSun1997 on
Our tax policies are already complicated so obviously the right move is to keep making them more complicated
lilpopjim0 on
So this is basically tax on the cash sitting in your S&S ISA but not on the actual investment profits?
TonyAngelinoOFAH on
Labour are a disaster. I’ve no idea how they won Makerfield, people are clueless. Surely even Reddit users see this.
[deleted] on
[deleted]
Hi-archy on
I don’t think people understand this so I’ll try to help.
Cash isa and stocks and shares isa are still tax free.
What is getting taxed is cash that **sits** inside your stocks and shares isa (uninvested)
KatEmpire on
Classic Guardian headline making out it’s HMRC who set the tax rates and rules in the country, and not the politicians.
Crazyhamsterfeet on
She needs to go. Awful choices over and over. Stupid shit like pay per mile tax coming up for electric cars?! Awful.
ash_ninetyone on
I get this is a strategy to try and get people to invest in the stocks instead, but this is a dumb way to do it. Not everyone knows or has time to accurately identify good stocks from company financials or news, and not everyone wants to have the risk of picking a stock and it going the wrong way, even if the safe option is to just throw it into an index.
Taxing interest on uninvested cash is a dumb idea, it defeats the point of some ISAs. Some people would just prefer to go by interest and hope it outstrips inflation
indicush on
If you’re just hoarding cash in a stocks and shares isa you’re doing it wrong anyway
KitchenIcy2450 on
Why not cut out all the expenses the mps get just for turning up at question time as they get an extra £400 and hour plus food allowance £60 in total over a grand as some claim for accommodation and reforms lee Anderson claimed £20,000 for a holiday and in total for the year £200,000 scrap all MPs perks and make them pay back as hospital staff get £40,000- £60,000 these medical staff are worthy there weight in gold MPs do not justify there inflated wages
Rupii on
Young people need to realise you do not have the same opportunities as your parents when it comes to many things including ISAs. First the limit cut and now an additional tax on their own new rules.
backtogeek on
Tax tax tax tax tax tax a tax on tax and tax that too.
Her father was a tool maker!
SushiRollFried on
Just move it to cash isa. You can easily transfer it between the two. Simple
Edit: looks like i was wrong after april 27 you cant do this. Best bet is to move to stable ish ETF like all world cap. UK really is becoming a shit hole. To think we were once a great nation but now destroyed by greed and corruption
Mental-Fisherman-118 on
This feels more about nudging people into correctly using their stocks and shares ISA rather than a revenue raiser. If you’re accruing interest in a stocks and shares ISA you are using it wrong.
Given that they recently gave young people an extra 500 in the s&s ISA deposit limit annually this is likely a measure to prevent banks offering competitive interest rates on s&s ISAs to let people bypass the stricter limit on straight cash ISAs – where you should be accruing interest.
Edit: Honestly on reflection this post is probably a good litmus test for your political nous – if you’re one of the people outraged on this thread, know that you are probably misunderstanding a good portion of the things that annoy you.
mupps-l on
Would’ve been a lot cleaner to simply prohibit stocks and shares ISAs from paying interest on uninvested cash and prohibiting cash like options like MMFs from being held within a stocks and shares ISA.
shxwcr0ss on
if she wanted to encourage investment, why not remove stamp duty on uk stocks?
what reason would i have to invest in uk, when i can buy usa fee free
AlfaBlay on
So I work in the personal savings industry and I have mixed feelings.
Firstly, there’s no way the goal here is to actually take tax from savers. The thinking within the industry is that it’s tied to another rule – reducing the annual Cash ISA limit to £12k for under 65s. There’s a potential workaround for people who don’t want to use stocks and shares in that they could hold £12k in a cash ISA and £8k in a S&S ISA but just leave it as cash. This tax is designed up penalise that setup.
On that front it makes sense to make sure that the rules are functioning as intended. However, it’s a pretty poor approach in my opinion – S&S savers might typically withdraw from stocks into cash before withdrawing fully, particularly for large transactions. If that scenario ends up getting taxed it would be a betrayal of the entire purpose of the product.
The whole raft of changes generally (age related as well as tax changes) are also going to be really tough to implement into the systems that already exist within most banks and building societies so there’s a risk that some providers may reduce their ISA offerings in the future for the sake of simpler book and balance management. Given how well embedded ISA is within the UK system generally, it definitely won’t decline in a major way, but complexity damages competition as a general rule especially when so many firms will need to modernise their tech to support the new requirements.
On a separate note – HMRC/Treasury handling of the technical details has been diabolical and I think there’s a strong chance this whole change gets delayed as no one expects to be ready in time.
Smidday90 on
Tax on already taxed money you save in an isa to stop it being taxed
0Bento on
Literally, all they had to do was launch a new product called the “British ISA”
Fresh allowance above and beyond the existing £20k, but it could only be used to invest in British businesses. They could even have offered the tax back on the deposits as they did with the Lifetime ISA.
This is just a bugger’s muddle
recursant on
Is this her version of the wealth tax everyone has been asking for?
East_Succotash9544 on
Earn money pay tax
Buy stuff pay tax
Put money to isa pay tax
Then billionaires pay nothing.
Brilliant
Ancient-Function4738 on
The fucking administrative costs will be higher than the bloody revenue
worldrampage on
God forbid anyone makes financially responsible decisions in order to try and improve their future prospects.
Open-Dragonfruit-007 on
If she think I will be investing it in UK stocks think again. The rate she is going, be nothing worth investing in, in the UK. Rather buy safer foreign stocks
iamezekiel1_14 on
Had a lot of time for her in a lot of respects but on this one – no. What do you want us to do?; not save?
Edit – having read up on this; I’m the idiot and thought it was getting at something else. I have far less issue with this now.
ASavageHobo on
Labour voters clapping like seals right now.
Can we not have any money anywhere?
Dogmata on
More taxes on working people instead of wealthy people. Remind me again how this is supposed to be the party of the everyday people
ox- on
How the fuck are you supposed to work this if you get sporadic cash dividend payments. Why sporadic….. because its a fucking S&S ISA? Daily interest on the cash before you take it out of your account? Fill in a tax return now if you are working? WTF ??? Labour out now ! Too stupid to function.
38 Comments
I honestly wish she went instead of Starmer. Clueless.
Need more money for migrant shelters on the double.
A tax within a tax free wrapper. I wish Rachel could just go back to playing chess.
Sorry but am I just misunderstanding, why would your have any cash left over in your stocks and shares? Don’t most people put it into a fund
Anything to keep the triple lock going and as burnham has said he will keep it I guess we can expect more of the same under him
Not really news, passed last year they are legally required to proceed with it regardless of the political theatre
are there many people getting cash interest in s&s instead of a cash isa? It kind of feels like one of those revenue raisers where people will realise they’re doing something odd and move it (or maybe that’s the point?)
The first time buyer ISA looks good. I worry that the 22% tax will just punish the financial unaware rather than incentivise them in the way intended
Another complexity added to an insanely complex tax system and we wonder why people disengage with financial education
Brits are really risk averse when it comes to holding shares for personal savings – I think this is good to encourage more investment in the stock market.
Holding cash in an S&S ISA would mainly be with an intention to circumvent the 12k cap, so seems a reasonable step to take to prevent it
Our tax policies are already complicated so obviously the right move is to keep making them more complicated
So this is basically tax on the cash sitting in your S&S ISA but not on the actual investment profits?
Labour are a disaster. I’ve no idea how they won Makerfield, people are clueless. Surely even Reddit users see this.
[deleted]
I don’t think people understand this so I’ll try to help.
Cash isa and stocks and shares isa are still tax free.
What is getting taxed is cash that **sits** inside your stocks and shares isa (uninvested)
Classic Guardian headline making out it’s HMRC who set the tax rates and rules in the country, and not the politicians.
She needs to go. Awful choices over and over. Stupid shit like pay per mile tax coming up for electric cars?! Awful.
I get this is a strategy to try and get people to invest in the stocks instead, but this is a dumb way to do it. Not everyone knows or has time to accurately identify good stocks from company financials or news, and not everyone wants to have the risk of picking a stock and it going the wrong way, even if the safe option is to just throw it into an index.
Taxing interest on uninvested cash is a dumb idea, it defeats the point of some ISAs. Some people would just prefer to go by interest and hope it outstrips inflation
If you’re just hoarding cash in a stocks and shares isa you’re doing it wrong anyway
Why not cut out all the expenses the mps get just for turning up at question time as they get an extra £400 and hour plus food allowance £60 in total over a grand as some claim for accommodation and reforms lee Anderson claimed £20,000 for a holiday and in total for the year £200,000 scrap all MPs perks and make them pay back as hospital staff get £40,000- £60,000 these medical staff are worthy there weight in gold MPs do not justify there inflated wages
Young people need to realise you do not have the same opportunities as your parents when it comes to many things including ISAs. First the limit cut and now an additional tax on their own new rules.
Tax tax tax tax tax tax a tax on tax and tax that too.
Her father was a tool maker!
Just move it to cash isa. You can easily transfer it between the two. Simple
Edit: looks like i was wrong after april 27 you cant do this. Best bet is to move to stable ish ETF like all world cap. UK really is becoming a shit hole. To think we were once a great nation but now destroyed by greed and corruption
This feels more about nudging people into correctly using their stocks and shares ISA rather than a revenue raiser. If you’re accruing interest in a stocks and shares ISA you are using it wrong.
Given that they recently gave young people an extra 500 in the s&s ISA deposit limit annually this is likely a measure to prevent banks offering competitive interest rates on s&s ISAs to let people bypass the stricter limit on straight cash ISAs – where you should be accruing interest.
Edit: Honestly on reflection this post is probably a good litmus test for your political nous – if you’re one of the people outraged on this thread, know that you are probably misunderstanding a good portion of the things that annoy you.
Would’ve been a lot cleaner to simply prohibit stocks and shares ISAs from paying interest on uninvested cash and prohibiting cash like options like MMFs from being held within a stocks and shares ISA.
if she wanted to encourage investment, why not remove stamp duty on uk stocks?
what reason would i have to invest in uk, when i can buy usa fee free
So I work in the personal savings industry and I have mixed feelings.
Firstly, there’s no way the goal here is to actually take tax from savers. The thinking within the industry is that it’s tied to another rule – reducing the annual Cash ISA limit to £12k for under 65s. There’s a potential workaround for people who don’t want to use stocks and shares in that they could hold £12k in a cash ISA and £8k in a S&S ISA but just leave it as cash. This tax is designed up penalise that setup.
On that front it makes sense to make sure that the rules are functioning as intended. However, it’s a pretty poor approach in my opinion – S&S savers might typically withdraw from stocks into cash before withdrawing fully, particularly for large transactions. If that scenario ends up getting taxed it would be a betrayal of the entire purpose of the product.
The whole raft of changes generally (age related as well as tax changes) are also going to be really tough to implement into the systems that already exist within most banks and building societies so there’s a risk that some providers may reduce their ISA offerings in the future for the sake of simpler book and balance management. Given how well embedded ISA is within the UK system generally, it definitely won’t decline in a major way, but complexity damages competition as a general rule especially when so many firms will need to modernise their tech to support the new requirements.
On a separate note – HMRC/Treasury handling of the technical details has been diabolical and I think there’s a strong chance this whole change gets delayed as no one expects to be ready in time.
Tax on already taxed money you save in an isa to stop it being taxed
Literally, all they had to do was launch a new product called the “British ISA”
Fresh allowance above and beyond the existing £20k, but it could only be used to invest in British businesses. They could even have offered the tax back on the deposits as they did with the Lifetime ISA.
This is just a bugger’s muddle
Is this her version of the wealth tax everyone has been asking for?
Earn money pay tax
Buy stuff pay tax
Put money to isa pay tax
Then billionaires pay nothing.
Brilliant
The fucking administrative costs will be higher than the bloody revenue
God forbid anyone makes financially responsible decisions in order to try and improve their future prospects.
If she think I will be investing it in UK stocks think again. The rate she is going, be nothing worth investing in, in the UK. Rather buy safer foreign stocks
Had a lot of time for her in a lot of respects but on this one – no. What do you want us to do?; not save?
Edit – having read up on this; I’m the idiot and thought it was getting at something else. I have far less issue with this now.
Labour voters clapping like seals right now.
Can we not have any money anywhere?
More taxes on working people instead of wealthy people. Remind me again how this is supposed to be the party of the everyday people
How the fuck are you supposed to work this if you get sporadic cash dividend payments. Why sporadic….. because its a fucking S&S ISA? Daily interest on the cash before you take it out of your account? Fill in a tax return now if you are working? WTF ??? Labour out now ! Too stupid to function.