I don’t either to be fair, would be interesting to see how they handle accounts that have already passed the cap amount.
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Is that £500K in contributions? at £20K per year that would take 25 years. The number of people affected would be tiny, as would the amount of money it would raise. seems a bit pointless tbh
I read it as an overall cap of £500k including gains based on this paragraph. Of course all hypothetical at this stage.
‘A £500,000 cap would draw a line in the sand and prevent any more investors from breaking the million-pound barrier.’
Wouldn’t you just keep drawing down gains each year if you were close to the cap to avoid any potential tax? Seems flawed to me.
Seems like they want more people into the GIAs of this world. To be fair £20k per annum is generous compared to the states IRA allowances ($7k).
But with that all being said above, surely this won’t have a big impact considering we as a country don’t save enough as it is and would only affect a small percentage.
Counter point, it would make the well off use GIAs more and subsequently pay more capital gains tax.
Yeah, I don’t know how that would work, would they force you to sell?
Wouldnt this just contribute to inflation in house prices? Excess money above £500k would just be invested in real estate instead?
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Potentially so many consequences, but it would be giving them too much credit to think that they will take any of that into consideration 
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Interesting one this as if they hit both ISA and pension relief we are hurtling towards generations not being able to fund their retirement. We are told not enough people invest for their future in this country and this will compound this.
Reduce the limit to 10k for me, may increase consumer spending for those who currently pay the full 20k in or encourage an increased amount of money to be put into pensions.
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I have been grappling with this and the conclusion I have reached for myself is that I dont believe this Labour Government is for wealth building.
Although I am nowhere near any sort of limit that is potentially proposed here I can see this killing any asperation to do so in investing and saving if they intend to tax you to death the moment you reach these limits.
I am aware everything right now is just speculation but it’s all geared towards one direction in this upcoming budget.
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Conspiracy theory, governments feed false info to the media so when the actual budget details are released there is a sense of ‘wel that isn’t as bad as i thoght it would be’ even though it was never going to be that bad in the first place.
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A 500k lifetime cap on the ISA will in no way at all prevent me from saving and investing or reduce my movitation to do so. I’ll consider myself a winner if I get anywhere near having that much in my ISA!
I’m not going to waste time feeling sorry for any ISA millionaires out there either, they are clearly doing far better than the majority of people on this damp little island. I know you can get there by To The Moon gains, but I wonder how many people can actually afford to save the full ISA limit every year. It’s not far off the median salary.
If I’m ever rich enough to have the awful problem of having “Completed” my ISA and maxed out my pension then I’m sure I’ll be rich enough to just use offshore shennanigans to avoid paying towards the society I live in and which gave me the opportunity to accumulate so much in the first place.
End of rant. Time for milking.
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Couldn’t agree more. In fact if I had 500k in an isa I would be on a beach somewhere :).
I can understand a contribution limit of 500k but I can’t see how a value is workable. After all what if one of your investments suddenly booked (I.e Nvidia) would you be taxed on the additional value?
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But if you held 20 stocks, which one pushed you over the limit. I don’t see how it’s easy to police at all. Unless once you reach the cap, no more contributions for you, but gains can ride? But then surely anything over would be taxable? But how lol
Essentially forcing you to sell assets to pay your taxes.
Crap ideas like this will force people to cash out and leave
Instead of a ceiling, just cap the contributions.
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Taxing gains over that amount is unmanageable unless they begin taxing unrealised gains (which is ludicrous). Would they dictate what needs to be sold and if you sell and the price of your portfolio drops below the 500K limit due to a market crash would they still expect you to pay!?
If it is to target the well off, the best approach would be to target lifetime contributions or lower the amount that can be added tax free.
On the point of asperation, I am sure as hell going to put as much as i can and continue to invest. Policy isn’t going to prevent that, it’s a broader sentiment I can see occuring. When bemoaning the practice of saving because some people can afford to save more than others is not equalling the playing field it is creating an ‘us aginst them’ mentality and reinforcing “only the rich can invest”. 
You wouldnt be on the beach you would be hungry to make more money😀
Did anybody getting making up scenarios in their head and getting enraged by them actually read the article ? It’s something she wrote about 8 years ago. The capacity of newspapers to twist gullible people’s thinking never ceases to amaze me.
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It’s something she had views on years ago but that doesn’t mean to say her views have changed and she now has the power to implement them. As I said in my post it’s all speculation.
Whilst I agree that worrying about something you have no control over is pointless, calling people gullible is pretty crazy.
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