Couldn’t agree more!
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I don’t have a high paying job barely scraping min wage I do have savings that’s because I watch my money and live by strict rules Usally dictated by a spreadsheet that allows me to see month on month what I have and where my money should go, so once all bills are paid and savings are saved this includes food and all I have 100 to 150 to my name a month to use for fun or extras. It’s going to get less and less as we go into 2023 so some savings will have to be reduced to compensate but I hope not by much.
Other peers around and work mates just spend and spend on anything and everything, some are living life paying for holidays non stop etc so I guess peachs and plums.
They live and don’t save I live but not as great as them but I have goals though and targets and when I hit that date I can start doing what they’re doing and that date happens to be Nov this year.
I guess it helps to have a partner as well to split bills etc which I don’t and a lot of them do but hey ho for now I’m living comfortably and saving well for the wage I’m currently on so I can’t complain.
I went off on a tangent and I won’t ever be near that 100k tax free Allowence but just thought I would add a little for those on near min wage trying the stock market.
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Over your lifetime of saving though you may well hit the 100k mark. Keep reaching your goals. I dont see this policy coming into fruition anyway.
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I can’t see them doing this. The people who would be most affected are the fairly well off Middle Englanders who vote for the Tory party. Imagine the outrage in the Dailly Express/ Mail etc if they brought this in
It’s only a think tank’s idea anyway, how often do they actually implement them?
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No point worrying about things that have virtually no chance of being implementing.
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This will be a very discouraging policy if it’s ever considered. Not a good one.
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I wouldn’t say this is no chance of this, I agree Conservatives would be fairly unlikely to implement (maybe ~10%) but they might be looking further ahead to a Labour government.
It seems like Labour is at ~80% of winning the next election and I’d give this (some cap on ISA totals) a ~30% chance of being implemented under them as I expect it would poll well. So overall I’d say probably 25% chance by 2026 - I don’t think it’s out of the question.
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I’d agree it’s more likely under Labour, still unlikely IMO. and I think they’d go for a higher cap. according to the article there are 1.5M investors with over 100K in an ISA. that’s a lot of voters if it’s a close race
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I can’t see labour upsetting middle England in its 1st term even if as seems likely it does get in next time. I would actually just double stamp duty on share transactions if it was me doesn’t affect long term investors too much and is paid by all including big institutional.
How is it tax free, the money you put in from salaries and investments has already been taxed before putting in an isa.
They are looking for more ways to get revenue from the public than the rich. There are 26000 rich individuals that dont pay any taxes in the uk because they bring business into the country, tax them a little!.
Can anyone help me to get my money into the cayman islands?. 
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Just wanted to say thank you for this post, I find it really inspiring. My resources are not that great either, and unfortunately I’ve been pretty much reduced to reinvesting dividend income because I can’t really invest any new money, hopefully the economic situation changes soon as cost of living is really depressing! But for you to say you’re barely minimum wage and yet still making sure you not only save but actually invest is great - keep that up!
I’m not very in favour or capping the tax free allowance at 100k either, but like you I’m probably not in danger of reaching that level for a very long time…
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I’m against this proposed cap as a solution but I do think there’s a problem with Isas disproportionately benefiting the wealthy.
I would like to see a progressive system similar to the personal savings allowance. For example, basic income tax payers get a £20k/year Isa allowance, falling to say £10k for higher earners and zero for those paying the additional rate.
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Ridiculous. 100k is a not even that much money in the grand scheme of things (i’m talking retirement).
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I agree, but taxing other people is broadly popular and there’s a lot more who don’t. Even the Conservatives reduced the additional rate threshold and based on the response I saw that wasn’t too controversial. I’m not saying it’s super likely but a ~30% probability under Labour doesn’t seem outrageous to me.
I very much hope this doesn’t happen but I’d caution anyone who is very confident it won’t to perhaps consider how outside of this audience it might seem very desirable. The RF report is calling out how low savings rates are in the UK, that’s a lot of people who would be unaffected and could see this is as equitable way to raise taxes.
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True i just meant currently I wouldn’t be near but I forgot to say that lol.
I mean for example say you were to gain 10% on £10 a year since you were born until retirement age if 68 that Nets you :-
Hoping my math is correct?
10((1+0.10)^(68)−1)÷0.10 = £65,168.34
Now scale it up and this is where my goals speech above came in, if I stay strict etc for at least 15 years I would actully have a nice amount in the market and a new achievement but even at 5 years I would be really happy.
Of course nothings as simple as a quick calculation like that as you need enough first off to buy a stock to gain the 10%, then you have stamp duty, fees maybe, and stock market fluctuations but again it was just an example of a mere £10 a year saved.
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I do agree with you on this entirely. Not sure entirely how to solve it or if your solution might be too blunt an instrument, but I look at the fact that with my income I am lucky some years if I can add £1,000 to my ISA, and compared to a lot of people even I am probably extremely lucky. Contrast this with people on very large incomes able to add £20,000 every single year and allow that to pile up, it does seem somewhat inequitable.
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Especially when you consider some can deposit £20,000 on April 6 each and every year.
If you’re on a low/modest income, you’re unlikely to hit £100k so the Resolution Foundation’s proposal doesn’t really address the problem. A sliding scale based on income feels fairer but it’s far from perfect.
I’ve managed to fill my Isa allocation this year for the first time but that’s only due to a property sale.
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I hope that the purpose of having an ISA is to improve one’s finance instead of trying to punish another one because he/she happens to earn more than oneself
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Just goes to show, small sums invested regularly over the long term can quickly compound. 100k retirement pot in a ISA is hardly an aim for the elites… that’s a piss in the ocean.
People like this can take a long leap…they get to the top and then try to pull the ladder up. Eff that. If any government does this im leaving the UK.
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Terrible idea… I fully intend to do a Peter Thiel 