Martin Lewis issues update over ISA thresholds 'being cut' by Labour
The BBC Sounds and ITV star said "there's lots of speculation written up as news, but absolutely zilch has been announced" amid swirling rumours cash free ISAs could be targeted by the Labour Party.
Martin Lewis has issued a warning over ISA thresholds being cut. The BBC Sounds and ITV star said "there's lots of speculation written up as news, but absolutely zilch has been announced" amid swirling rumours cash free ISAs could be targeted by the Labour Party.
Mr Lewis said: "A lot of people are asking me "what's the news with ISAs thresholds, are they being cut?" The answer is there is no news, there's lots of speculation written up as news, but absolutely zilch has been announced. In fact I doubt anything has been decided yet (though it is being discussed)."
"To those asking should I take money out of ISAs. If there are changes it will almost certainly (nothings 100%) be on how much you can contribute in future. It would be very unlikely to impact any money already in cash ISAs. So don't do any panic moves, just keep going, nothing has happened," Mr Lewis said.
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A social media user replied: "I see you say "ISAs", I've only seen news on proposals to reduce (or scrap) the Cash ISA allowance, with the rationale of encouraging stock market investments. Has there been any talk about this applying to S&S ISAs? (I am aware the £20k is now shared across all types)."
"The thresholds are ALREADY reasonably set. To lower them further would confirm yet ANOTHER attack on the lower-to-middle class (whilst they avoid to adequately tax the super rich)," added a second social media user in reply.
A third said: "They should be raised in line with inflation. Ditto tax thresholds which should be backdated too. Millions of low earners are now paying tax for the first time & millions more are forced into paying 40%. It's economic suicide."
Another replied: "This country is finished, if cash ISA's are raided to balance the books." Another agreed: "You have to remember.. They are trying to tax you on ur investment. Remember that the companies you are invested in, have already paid Corporation Tax, income tax, and a vast array of other taxes. As have you. From Vat, Sales taxes and duties, Stamp Duty. What are we paying for!"