Is This REALLY The End of Tax Free ISAs?

[@MattBrighton]

What do you think about the ISA, ISA, Baby report?

[@conormckennaUK]

This is a terrible idea. Research has shown time and time again that education is the most effective way to increase incomes and pull people out of poverty. Instead of limiting ISA tax benefits, the government should be introducing financial education to the classroom from as young as possible. Teaching people how to save, invest, manage a budget, understand interest rates, mortgage rates, how banks works, how compounding interest works, the benefits and negatives of credit cards.

[@conormckennaUK]

Financial education should be Implemented across the board as a key part of the curriculum right through to the age 18. We should be preparing people for the real world by arming them with the knowledge they need to succeed. Not punishing those who have managed to figure it out (luckily) on their own.

[@llms_react]

It's bad on purpose to make you click

[@teewillson5599]

This plus the pensions cap at around £1m could quite possibly be the worst incentive combo to building financial resilience in the UK.

[@paulh617]

This frustrates me , £100,000 saved is not "Rich" and is built thorough good financial decisions that people with far less savings could most likely also have achieved had they put their minds to it.

[@rascalap2968]

So, of the 27 million ISA holders in the UK, only 1.5 million (5.55%) have over £100,000 in their accounts. And these idiots propose capping all 27 million people - and as you say, it’s not difficult over time to cross that threshold and be hit by this tax. This report should never have seen the light of day, and disgraces the organisation that produced it.

[@rhysshepherd9006]

Great vid thanks man! I wasn't aware of this. They wonder why people are striking! The people have had enough

[@rhysshepherd9006]

@@MrJamessell30 I know that, I’m just saying people are fed up with the state of the British economy and you got people like this who just trying to make things worse

[@phoenixmaid2533]

Another savings factor for low-paid workers in receipt of universal credit is the fact once your savings hit £6k they start reducing your benefit payments each month ( £4.35 for each £250 or part of £250 over the 6k ) this incentivises you to keep any savings you have below 6k. as £6000.01 in your savings account for a year will cost you £52.20, £6250.01 would cost £104.40 etc

[@jamesspearing121]

@@johntiller605 In actual fact forget taxing the high end ISAs more… which realistically won’t help the poor at all, incentivise savings for the poorer and don’t start withdrawing their benefits when they do the right thing and save!

[@phoenixmaid2533]

@@robertjones2053 Anyone earning over £12570 is a tax payer to. With high rents and childcare costs you can be earning upto 40k and still be entitled to universal credit. Are you really saying these hardworking tax payers shouldn't be allowed to do the right thing.

[@Alex-rl6mq]

@@robertjones2053 that's the entire British system, when you're on pension, that's technically not your money(even though it comes from you),it'll be some 20year olds tax , so if you can save money on a pension you shouldn't get it? I understand to any of us, you pay your way and then the govt gives it to all these people that don't But think about this in the long run, so for someone who is 18 can't work , maybe is disabled, the govt will give them more in just housing benefit alone over say another 60 years than a house would cost in 90%of the country. 500p/m 360k in 60years. It's the govt that scams you, might as well just give them a house and never pay housing benefit. Also the bottom 20%of working adults that's 6.56million people equate to 6%of the total wealth,so people not working are below that. put that in perspective of estimation of around 328,000people (top 1% of working adults) pay around 25-30% off ALL UK income tax you wonder why 54% take out mor than they put in. Paying 18k tax is not even an atom dropping in an ocean. People on low income should be allowed to save, (maybe like an ISA only to buy a house)by the time they have any significant wealth it's a pittance anyway in comparison, if you don't allow them to save , the gap grows ever bigger and austerity round 3? I've lost count.

[@samanthahardy9903]

@@phoenixmaid2533 When I was earning £13,000 per year with no savings, my claim for Universal Credit got cancelled as apparently I was earning enough. As a result I went into rent arrears and almost got evicted!

[@rikardsaje]

It's almost worth stopping work amd going on benefits.

[@davidlee8999]

We both retired 18 months back and thankfully are in a decent financial position and whilst not a financial wizard I certainly looked for into our finances in the last year I worked and I am certainly the wiser for doing so this report is so wide of the mark it beggars belief targeting those who have been financially prudent is a sure fire vote getter

[@bartoni79]

Taxing those who have >100k in isas won’t help those with no savings save. In a similar way to increasing income tax won’t help those worse off save. Maybe redirect funding from HS2 or increasing stamp duty on foreign investment?

[@puccarts]

Way to get skilled workers to leave the UK. We already have a doctor crisis in the NHS.. they work so hard for their medical degrees and already get paid lowly compared to other western countries. More will simply leave for Australia where they get paid 3x higher than here.

[@SkarrGaming]

I literally just started my stocks and shares ISA last week after leaving money in my regular bank account for some time. It's doing nicely so far so the government better not screw things up for me just as I'm getting started.

[@yournan6546]

They should hit the Buy to Letters with over 20 mortgages and abusing a system, not the hard-working person saving for their retirement.

[@Edithae]

That would be a lot of MP's.

[@christopherbrice8400]

If you keep your savings below £16k you can claim a lot more benefits, so why save.

[@timmiyg5894]

A lot of valid points. However, investing ~£20k at 30 to produce ~£178k at 60 may be correct but you assume that the 100k limit would remain for 30 years. I know a lot of thresholds are currently held, but for the next 30 years? To double to 200k, the limit would only need to be increased by < 2.5% a year.

[@diogocambrian]

I've lived in Portugal, Spain and Ireland and all of them feel like a prison to the small saver compared to the UK. the UK has some of the lowest fees to trade stocks and shares, Capital gains tax benefit for profits up to ~12K, the ISA incentive, the fact that you aren't taxed on the first 1000£ of saving interest!! And the fact that you can access a lot of personal pensions over a decade earlier before you retire. I dont think people in the UK appreciate that enough. In Portugal you are taxed on your savings accounts that even now are at best 0.7% you have no tax benefit in saving. The tax system creates 0 incentive in saving longterm. And the genius of the ISA is that by taking money out, you can just put it back in because you have the 20K limit per year. It is a genius program that other countries should copy. Especially now that government pension schemes are practically all failing in Europe

[@memoada5097]

This was really interesting, thank you Matt!

[@dreamingwide]

I'm a foreigner, moved here to start my life and just last year started a LISA to help me buy a home one day. Really hope the government rejects that awful proposal

[@duckaroy]

I did the same @Daniela, and discovered the LISA account was almost useless if buying property in London. From memory you can’t benefit from the 25% interest if the property value is more than £450k :(

[@dreamingwide]

@@duckaroy Totally. I live outside of London so it is still useful for me but for Londoners...yes, it is pretty much useless unless you want to use that money for retirement instead ☹

[@YabbaDadADo]

This scheme seems to be aimed at moving the target from The Rich to "the rich". My earliest memories were following my mum around fields picking potatoes, eight hours a day, rain, sun or other, from 3 years old until I went to school. I was lucky enough to have the ability to grow my wages towards my 30s and 40s where I can save meaningful (but not huge) money for retirement. My state pension, at best, will be ~£180pw (adjusted for inflation). The savings vehicle we chose for the later years was to use our joint ISA allowance to allow us to retire at 60 and not be poor after a lifetime of work. Let's not forget these savings are from our income which was already taxed at > 40%. With all that said, and in more positive news, as poor as I may be in retirement I am now "rich" apparently - and the people who cannot afford to save anything (me for most of my life) won't be taxed on the money they cannot afford to save anyway. Win win!

[@thesupergreenjudy]

Wah I hope not, I am just getting started!

[@Scott-xl3sc]

The author of the report seems like a clown with no clue about the subject. Perhaps savings could be made by scrapping "think tanks" that can't think rather than penalising low/average income savers.

[@jamesspearing121]

Probably because they are only recently graduated and have no real life experience

[@g.p616]

Great Vid, but correction; life expectancy of a 65 year old is 85. Current Retirement age of 66 is crazy in this day and age. When retirement age was first introduced life expectancy was 67. Country needs to introduce no expectation for people to retire and a sliding scale of retirement where workers work part-time and heavy manual labour workers are transferred to lighter work duties. Would love to hear your views on retirement age👍

[@MattBrighton]

It's potentially going up in the Spring budget so keeping an eye on it. Couldn't find the official life expentancy figure, ranged anywhere from 81 to 85 when I was looking but not sure where / if an official figure is stored

[@rinchhensherpa6972]

They should cap it at £500,000 instead. £100,000 gets maxed out within 5 yrs of saving.

[@fredscratchet1355]

I've had a stocks and shares ISA for years with Aberdeen and received a letter last week informing me it is being closed 😡

[@oscariglesias9004]

Low income earners are not able to save, that's why they don't put money into investment. That's my current situation, after me and my wife became parents it makes no economic sense to send the kids to nursery for her to be able to work, it will literally take 75 to 90% of her salary, so we now live on my salary only. When we were able to save 10 to 20% of our income before, we are now unable so save a penny. We know it's a temporary situation but it's worrying.and frustrating. I wouldn't take this paper too seriously.

[@lf111275]

Wouldn’t the tax work by just limiting contributions when you have over 100k in isa? Then you are forced to save outside an isa and pay CGT in the usual way?

[@deezzell5907]

They don't want you saving. They want you spending. So they'll penalise savers.

[@diogocambrian]

only reason to incentivise saving is because the pension scheme might fail and run dry. otherwise yeah. you want people to spend and be in debt for a "thriving economy"

[@paulcollins2297]

Which financial company helps fund this think tank?

[@FreaksSpeaks]

Author of the " report" must be a genius.

[@MsHumble4]

I suspect the Bank invested my isa money… Where should I go to have it investigated ? They told me they were going to invest it and I straight away phoned the Bank to tell them I didn’t want to invest my money… I have left the Bank … and they haven’t sent me the me the isa Documents!

[@bobbybrown4652]

Great video 👍

[@bluebrakes]

There is already a cap on inheritance and property, which doesn’t increase with property prices. So every year people lose more to tax.

[@benpriest1418]

So you can't save up for retirement to counter-act the terrible state pension we get. Fantastic.

[@MattBrighton]

Damned if you do, damned if you don't. Hopefully this paper never makes it past the PDF it was saved on

[@MilkyOolong]

Yet spend your whole life before that paying for someone else’s triple locked pension, it’s absurd!

[@sammychan19]

Love your videos Matt. I feel silly only just noticing that you must green screen. I thought you were randomly moving around the house with your mic 😂

[@MattBrighton]

I do move around the house! 😄 starting renovations soon so hoping to make a proper office studio so I can film 3 angles in the same room rather than literally sitting on the stairs

[@sammychan19]

@@MattBrighton ah my bad! The transitions are too smooth. The house looks really spacious. I'm sure it feels very different to the flat you had.

[@wonderingthoughts926]

So basically, if you earn an average income but you decide to not blow it on financed cars, constant shopping and keeping up with the Jone’s, and invest it over time, you’re a big fat rich guy smoking a cigar and you should be taxed!! How dare you!!!

[@lolwut1337n355]

100k doesn’t make you rich…

[@leethomas9549]

The average amount in an ISA at the moment is £29k. You're acting like this is going to hurt everyone, but it in reality you will pay 20% on interest gained while the balance is over £100k. Make a mountain out of a mole hill is a huge understatement

[@jamesspearing121]

Double tax - woo 🎉 sounds like it will fix the country… not!

[@robhingston]

The money we put in a ISA is from are Net income so we have already paid tax, This is a tax on the Poor

[@vickiphillips4876]

Taxed when you earn , taxed when you spend it and taxed again when you die! So now taxed when you save

[@jordge92]

It's so dumb and contradictory.

[@bdcalling1391]

£100k is five years of isa savings

[@daddo1600]

Wont happen.

[@lipstick3086]

Taxing the upper loe/middle class who like to save.

[@eralec]

And yes the ISA ISA BABY is such a demeaning and disgusting title. Honestly furious how some people play with people’s future. And for a measly 1 billion that they waste literally every second week thanks to Brexit

[@bdcalling1391]

Make the royal family pay inheritance tax problem solved

[@mrexpress8002]

I am so angry. i have been saving all my working life and now i will be punished for making sound financial decisions.

[@nicobass1966]

Scare mongering I think!

[@ojlbrickwork8092]

Should off floated over on a dinghy throw my paperwork in the sea and then get everything given to me

[@Joey-Cameltoe]

Need to cut spending. NHS must be downsized significantly and we start paying back the national debt

[@8G00SE8]

Eveyone blames boomers, I'm pretty sure Gen X are the secret masterminds here.

[@MattBrighton]

They might be the dark horses we need

[@Cleisthenes607]

The conservatives would be out of power for a generation if they did this.

[@ojlbrickwork8092]

You'll own nothing and be happy, according to world economic forum