Depends on where you got your degree in drama or sociology will decide on how you report finance?
Yes Iām very pedantic tell me everything I must know.
Its a hard life being a weegie
I mean itās clear that theyāre trying to prop up the UK financial markets - so a good thing. But as previously mentioned, this will arguably have a muted effect as not many people can max out their ISAs so itāll benefit those who can - whom are far fewer than those who canāt. I think itās the unfortunate classic conservative lack of awareness that the majority of people donāt max out their ISAs.
I definitely think that the fact they came up with this is a good sign as they are trying to think outside the box but it wonāt have the effect they think it will. No idea what the alternative is but they could try and prop it up by doing something like for every Ā£1 invested, theyāll put in an additional 10% (with some conditions) to a maximum of Ā£5,000.
But i think itās a good sign theyāre trying to innovate.
Well this didnāt even last a week.
Itās effectively been shelved until at least after the election with a waste of money to āconsultā on it and no date for when theyāll offer it.
Useless government
Non-starter then as it will be a different government post-election!
Its pointless, and expensive to implement. Of course it will be dropped by the new government.
A question for my fellow investors what could the government do to encourage you to invest in the UK?
I invest my ISA in the Uk anyway saves dealing with the FX and withholding taxes.
Nothing
Nothing would encourage you to invest in the UK?
I guess Iām doomed as I donāt need encouragement to invest in the UK
Theres nothing wrong with UK stocks. Just a matter of picking the right ones
UK for dividend. US for Capital Growth.
Gross generalisation.
Thinking on the bog here , Increase the ISA allowance to another 20k for UK stocks only, 5k is not cutting it for me at all, they could increase the CGT allowance back to at least £12,300 for UK stocks.
These are the only things off the top of my head that I can think of that would encourage me to invest into UK stocks.
0% dividend tax on all UK companies
Thatās quite a long post, you mustāve crowned during it.
How about refunding the stamp duty if you own a stock for over 30 days. Discourages trading, encourages investing.
Why should you discourage trading?
And anyway, often when you trade you donāt pay stamp duty because you donāt buy the stock, youāre betting either long on or short against it.
Because, ISAs- presumably the S means encouraging to save, long term. Getting 0.5% back may encourage it.
Spread betting, should add stamp duty
I think they should encourage companies to invest in growth rather than focusing on dividends
You canāt add stamp duty when there is no ownership of the asset.
The reason why spread betting is tax free is, much like CFD trading, most people lose money doing it. If it was taxed, then the losses could be reclaimed and the taxpayers would actually lose money. So, it actually benefits all to keep things as they are!
Fair points! Cheers.
I guess I think thereās room to disincentivise short term gain (maybe 0.5% on profits) and for holding shares longer term.
Though with so many complex instruments and derivatives thereās probably always collateral damage.
A lot of the big dividend payers in the FTSE 100 are mature and donāt have much room for growth. How do you significantly grow National Grid for example?
Itās mainly because gambling in the UK is tax-free and spread betting in its various forms is seen as gambling by the government. I trade options on IGās spread betting account and thatās tax free. Currently, Iām not losing money there, unlike in my Paddy Power account!