Potential £100k tax free ISA limit being proposed in the UK

It would be subject to inheritance tax.

I don’t believe a SIPP is subject to inheritance tax though but the access rules are obviously different.

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The law of unintended consequences would apply also.

I guess people would be more likely to invest further in property, as gains are taxed at a much lower rate than their ISA savings would be.

Which would be terrible for everyone who doesn’t own a home already.

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Capital Gains Tax is higher on secondary residential property than it is on other assets.

As it should be

I find it difficult to call that a tax, never mind a hidden tax.
Taxes are applied by the governments. Inflation is applied by the market via supply and demand.
And no it doesn’t follow that the government should raise allowances by the rate of inflation.

I agree with most of what you’re saying with the exception of “wealth doesn’t equal class”. Yes it does. What else would. The argument often heard “I grew up on a council estate” (general the worse one in Europe), changes nothing. For a start off as working class gain higher income there views and attitude change.
Also the fact they are living in an expensive house as far away as possible from the working class says a lot about their views.

Now that is a bit far fetched I very much doubt that lots of working class have 100k ISAs. One reason is they would not have had £5,000 spare for the last 20years.
I am going to have to say it…a ludicrous statement.

I know of people who worked in factories and retired as millionaires. If you are working somewhere that pays well (in this case it was BAE systems) and invest wisely over 30+ years it can happen

and remember my 5K per year example assumes zero investment growth.

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I was clearly talking about the distinction between classes based on income. Someone who has a middle class income is middle class no matter what his background is.

Hence your middle class. A working class person on a working class wage is working class and definitely could not have afforded to put £5,000 away for the last 20 years.
20 years ago £5,000 could have been his entire wage

Minimum wage for a 40 week in 2003 would have added up to over 9000 a year not sure where you are getting 5k from. Most working people would have earned considerably over minimum wage.

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So they would have spare £5,000 to put in ISA? Ludicrous.
Note could have been.

What’s the cutoff for the salary point you move from working class → middle class? Was thinking about doing some overtime but don’t want to lose my ‘man of the people’ credentials.

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That’s ludicrous, you must be middle class already if you are offered overtime and think about not taking it.

Walks off muttering under his breath.

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I don’t think it is about class per se but every industry (union) is claiming they have members using food banks, 1/4 children in poverty and the constant media coverage of how cost of living is killing everyone so not sure how many normal people can afford £400 to put in an ISA every single month.

Close the rich loopholes for tax and bring down ISA to say 10k a year and spend all the extra tax on social care :slight_smile:

Me and my missus monthly income is 6.5 k most would say thats middle class but its not easy on that nowerdays

,£78,000 that passed the cut off point for being middle class miles back.
I just started my state pension £197 a week plus a disability pension works out £321 a week. £16,600 a year. A lot more than I need to live on. Will need to go to the pub more often.
A lot more often!!

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That’s actually above middle class - maybe just upper middle class for London. It’s common that people assume they’re ‘poorer’ than they actually are. A vast majority of the households earn much less than you guys.
And if you’re struggling on 6.5k, you’re doing something wrong haha.

I don’t want to be ‘that guy’ who talks about money management, but I do really struggle to look past it.

I earn ~£1900 a month.

£180 on council tax.
£200ish on gas and electric.
£200ish on food.
£400 on mortgage.
~£60 on petrol to get to work.

That’s £1040.

~£860 left.

I then invest £550, put £50 in savings. £260 left.

I then live quite comfortably off that £260. I own an 07 Polo, bought my phone and got a sim only contract etc.

Call me cynical, I am on the average UK salary. How do so many people struggle? Is it partly down to poor money management?

This isn’t a dig at anyone on the poverty line by the way. I’ve always been interested in money management. This is before pulling in my partners salary, who is on 23k…

I am in my twenties and from experience my friends who complain that they have no money have £400 per month mercedes, £150 trainers, mega phone contracts etc etc

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This is so true. What we think of as a relatively modest household income, say £60k a year, probably puts you among the top 1% of earners globally in absolute terms.

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