Cash ISA - incoming reduction (don't panic)
Discussion
trickywoo said:
Fidelity have confirmed that you can put the full £20k annual ISA allowance into a 'Cash Fund' which is basically cash but can be held in S&S.
The key is 'fund' and there will be a form to acknolwedge that you may get less back than you paid in blah blah, which also means no FSCSSV_WDC said:
trickywoo said:
Fidelity have confirmed that you can put the full £20k annual ISA allowance into a 'Cash Fund' which is basically cash but can be held in S&S.
The key is 'fund' and there will be a form to acknolwedge that you may get less back than you paid in blah blah, which also means no FSCSYes it's a variable return but you can take your money out if you don't like it.
Philvrs said:
IG currently pays 4% on uninvested cash (upto 100k) in a s&s isa. There are some conditions like holding one open position (i think).
I thought most s&s isa offered something similar?
You'd have to assume there will be a limit introduced on this as part of the change, otherwise you'll just end up with a load of cash-only S&S ISAs. I thought most s&s isa offered something similar?
tele_lover said:
In case people are not noticing:
If you put money in a "cash ISA" invested in money markets, the 85/125k FSCS coverage does NOT apply.
Is anyone really worried about that. It’s just to stop the masses doing a run if they hear something on X.If you put money in a "cash ISA" invested in money markets, the 85/125k FSCS coverage does NOT apply.
If you invest on a reputable platform there is nothing to worry about.
Does anyone seriously think Fidelity or HL would fail in the first place or the government would let it happen if it seemed a possibility?
trickywoo said:
tele_lover said:
In case people are not noticing:
If you put money in a "cash ISA" invested in money markets, the 85/125k FSCS coverage does NOT apply.
Is anyone really worried about that. It s just to stop the masses doing a run if they hear something on X.If you put money in a "cash ISA" invested in money markets, the 85/125k FSCS coverage does NOT apply.
If you invest on a reputable platform there is nothing to worry about.
Does anyone seriously think Fidelity or HL would fail in the first place or the government would let it happen if it seemed a possibility?
Personally it hasn't stopped me using them to park spare cash in ISAs/SIPPs - mostly divi proceeds that I've not yet allocated for reinvestment, but also sometimes larger amounts when I've exited a position entirely. But it is definitely a risk, however remote, to be aware of and understand before jumping in.
Aaaaand there it is: HMRC to punish savers who dodge cash ISA crackdown
...by taxing "cash-like" holdings inside S&S ISAs.
Not entirely unexpected perhaps but this will be a bit of a mess to define and enforce if they actually pursue it
...by taxing "cash-like" holdings inside S&S ISAs.
Not entirely unexpected perhaps but this will be a bit of a mess to define and enforce if they actually pursue it
Edited by NowWatchThisDrive on Friday 28th November 16:09
NowWatchThisDrive said:
Aaaaand there it is: HMRC to punish savers who dodge cash ISA crackdown
...by taxing "cash-like" holdings inside S&S ISAs.
Not entirely unexpected perhaps but this will be a bit of a mess to define and enforce if they actually pursue it
Be interesting how they determine and enforce these rules, there are hundreds of non S&S ETF products including ones that mix S&S with bonds....by taxing "cash-like" holdings inside S&S ISAs.
Not entirely unexpected perhaps but this will be a bit of a mess to define and enforce if they actually pursue it
Edited by NowWatchThisDrive on Friday 28th November 16:09
jesusbuiltmycar said:
Be interesting how they determine and enforce these rules, there are hundreds of non S&S ETF products including ones that mix S&S with bonds.
Yep, there used to be restrictions on this stuff to some extent (e.g. interest generally wasn't payable on cash balances) back in the day but the ETF industry has come on a lot since then and as you say products containing fixed income assets have hugely proliferated, so I'm not quite sure where they might go with this.In fact by my reading of the govt guidance, as with the cash ISA carve-out itself these anti-circumvention measures inside S&S ISAs will also cease to apply once you're 65. What an absolute farce!
jesusbuiltmycar said:
NowWatchThisDrive said:
Aaaaand there it is: HMRC to punish savers who dodge cash ISA crackdown
...by taxing "cash-like" holdings inside S&S ISAs.
Not entirely unexpected perhaps but this will be a bit of a mess to define and enforce if they actually pursue it
Be interesting how they determine and enforce these rules, there are hundreds of non S&S ETF products including ones that mix S&S with bonds....by taxing "cash-like" holdings inside S&S ISAs.
Not entirely unexpected perhaps but this will be a bit of a mess to define and enforce if they actually pursue it
Edited by NowWatchThisDrive on Friday 28th November 16:09
What if you want to raise cash ahead of a property purchase which may not happen?
What if you want to hold a gilt until maturity?
What if you've done your annual ISA subscription and the stock market is dropping like a stone?
What if your investment strategy (like mine) is to hold a global equity fund and short-term gilt fund?
Edited by LeoSayer on Friday 28th November 17:10
NowWatchThisDrive said:
Aaaaand there it is: HMRC to punish savers who dodge cash ISA crackdown
...by taxing "cash-like" holdings inside S&S ISAs.
Not entirely unexpected perhaps but this will be a bit of a mess to define and enforce if they actually pursue it
LOL, I was just about to post that article here!...by taxing "cash-like" holdings inside S&S ISAs.
Not entirely unexpected perhaps but this will be a bit of a mess to define and enforce if they actually pursue it
Edited by NowWatchThisDrive on Friday 28th November 16:09
What if you buy a 6 year individual gilt, are they going to monitor it constantly until it is less than 5 or 2 years or whatever from maturity and then fine you.
NowWatchThisDrive said:
Aaaaand there it is: HMRC to punish savers who dodge cash ISA crackdown
...by taxing "cash-like" holdings inside S&S ISAs.
So... you earn money, pay tax on it, save it - and then pay tax on it again. Yep that sounds like Labour....by taxing "cash-like" holdings inside S&S ISAs.
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