They Just Put a Tax Inside Your ISA

@PensionCraft Its actually worse than a tax, because it doesn't take into account the Personal Savings Allowance. So its really more of a charge.

What I do not understand is that virtually all equity purchases are made on the secondary market. If I pull out of my MMF and buy equities it can only be from somebody else selling their equities. So there is no net investment in UK business from that transaction.

Can't the platforms reduce our fees if they stop paying interest, fee credit or something?

Labour’s complete lack of financial understanding is truly scary. As is their intent to tax everything, including now taxing tax-free saving!

Thanks Ramin, this is the clearest and calmest explanation I have seen of the new ISA rules. As I only hold a small amount of cash in my S&S ISA (alongside ETFs and a few individual stocks) I feel reassured and will not be making any changes.

Totally agree, they are just simply making the matter more complicated, which in turn deter those who they (claim they) want to get involved investing!
They need to start people learning about investing, not put up more fences!

Not being able to transfer back to Cash ISA seems like the worst aspect, if you've made use of several years worth of allowances and want to get out of the market, transfering money out of the shares ISA you have to lose the previous allowances.
How many people have a 100% money market Shares ISA?, can't be a huge amount.

Thanks, Ramin. Given the seemingly easy workarounds, it does seem like a complete waste of time.

Experienced investors know many ways of getting around the charge, and potential new investors may be put off completely by the extra complexity. What a mess.

if ETFs don’t count, what about CSH2 - isn’t that an ETF wrapped MMF?

Trust Labour to start taxing us on ISAs. Total disgrace.

Im an experienced and confident investor and even im confused!

I really wish someone would make Rachel Reeves watch this video! The government don’t seem to understand basic economics or financial psychology.

Goverenment aims are laudable, implementation is abysmal. Tax policy should be "simplify, simplify, simplify".

The elephant in the room is that its set a precedent , thin end of the wedge , people who are reluctant to invest will be put off even more now , just shows how these people are completely at sea with financial decisions ,P45`s for the lot of them .

Typical backwards politics. Instead of incentivizing stock investments by cutting taxes, they punish people that aren't even a very big part of the economy. All this does is send a message that discourages people from using ISAs altogether.

Rachael from accounts isn't an economist.

I suppose the Bright Sparks at HMRC, the Treasury and Bank of England can rely on their DB pensions and not worry about this.

HMRC should be allowed to concentrate on deliberate fraud and VAT evasion rather than tinkering with ISAs.

That's it, I'm opening a vape shop/mini-mart - guaranteed no interference then! 🙄

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