ISA Cash Rules: What's Changing? - Live

Sorry did I misunderstand at 21 mins did you say ISAs would only be for UK stocks

Does anyone know if the interest paid in a Trading212 ISA will be subject to a 22% tax as this is actually paid from money market funds

Let me understand this... Instead of just leaving us alone in case when we want to de-risk into cash, we will now have to buy 95% Money market ETF (so its not 100%, breaking compliance), the remaining 5% we buy an Ex-UK etf, just to show contempt, and we are entirely fine, no need to report anything to the tax man? What if We do a 99.9% MM ETF, and 0.1% in equity? Who wil decide what is too close to 100%?
May I emphasize that I am not at all bothered by 22% tax on cash interests, i am bothered by the need to keep records and worrying whether I am compliant.

Could you advice on examples of names of reputable money market funds that you can buy with cash that is sitting in your stocks and shares ISA? Thanks in advance.

Point is that successive UK governments encourage people to save so as not to only rely on old age pension at retirement age. So either they do or they don't. If we start paying tax on anything to do with the ISA, it defeats the object

Trading 212 I had to opt in to receive interest. So I guess I can opt out if I wanted to.

Thanks a lot Ramin for this and the past few live streams which I thoroughly enjoyed.

Thanks for this, very useful. Regarding CSH2 being a money market fund. The Goverment/HMRC will no doubt get its self in a total mess if they decide this fund is a MMF, as at present I believe outside of an ISA as long as you don't hold the ETF at end of October, the money made from it is deemed a capital gain and not interest from my current understanding. Assuming the above is correct, will they define this as a MMF in ISA but outside an ISA its not a MMF? As you say poorly thought through change providing a platform for supposedly professional people in goverment and HMRC to make themselves look amateur.

Great video, one question i have i missed the live stream, is can you have 2 S&S ISAs and have one entirely Stocks and one entirely MMFs? I split my investments this way.

Is it correct to say from April 27 all interest on cash/cash-like products within S&S ISA is taxable (subject to charge) regardless of when the money went in? Also, tax (charge) is applied without reference to PSA? Is the point about 100% cash/cash-like simply to define what constitutes a qualifying ISA S&S account and has no bearing on whether tax (charge) is applied?

I do wonder if it’s worth using low coupon gilts and savings allowances outside of the isa as the cash /bond portfolio allocation and use the isa for the stock part of your portfolio.

I wrote to my MP today. I recommend others do likewise if you dont like the change.

ust to clarify the 22% charge on cash interest in a Stocks & Shares ISA applies to everyone regardless of age — the over-65 exemption only covers keeping your Cash ISA limit at £20,000 and being allowed to transfer from a S&S ISA into a Cash ISA. I know that over 65's don't need to try to circumvent as they can use the cash ISA with a full £20k allowance, but I wanted to get this out there in case of confusion.

You don’t hate the government enough: you think you do, but you don’t.

Rachel Reeves sadly showing she really doesn't understand what she's doing. She reminds me of some of the people I work with, who want to pile more and more complexity onto everything to try and solve non-existent problems!

Many will have distributing dividends which will earn interest in the ISA and be subject to tax
until they are periodically swept into a bank account, probably at the end of the month so that the dividend distributions feel like part of a regular salary. More complexity and confusion. I remember the adverts… tax doesn’t have to be taxing!

This sort of stuff makes me nervous about ISA's long term - and ISA is one of the things that keeps me in the UK. Maybe I need to re-evaluate.

Hi Ramin, among the changes, I most dislike the ban on transfers to cash ISA - what if someone wants to derisk the money, say, due to a decision to buy a house and an upcoming need for a deposit in a few years time. In this case, one would sell equity at a market high and transfer to cash ISA.

Even the most experienced investors are never always fully invested in stocks, they always keep money in cash whilst waiting for the right investment. So not allowing the cash position to be part of the ISA allowance is crazy.

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