What if the recent pensions lifetime allowance changes were also made to apply to ISAs. It's something that has been talked about in government circles for several years as the number of investors with assets in their IASs of £1m or more has grown. The Government could argue, as it has with pensions, that an increase in the annual ISA allowance which currently stands as £15,240 could be justifiably countered by the introduction of a lifetime limit, making the ISA savings strand less attractive. A slightly more tricky area but one in keeping with some of the current proposed changes for pensions could be the introduction of a reduced annual ISA allowance for investors on higher incomes.
In additions both the major parties appear to be heading towards being inclined to claw back allowances from higher earners, as happens with child benefit, maybe this could be extended. The personal allowance, for example, which currently begins to fall away when a person's earnings reach £100,000, could be withdrawn at a lower income
More dramatic, but possible quite popular would be the introduction of extra taxes aimed at Britain's two-million buy-to-let investors. They have already seen a tightening of capital gains tax rules. Whatever happens on the 7th May Enable’s IFA’s can help you work through the implications for your financial planning.
Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE
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