3inaBednar Posted February 22, 2009 Share Posted February 22, 2009 Given that the government now wants us all to save can anybody explain to me why ?3600 is the maximum you can out in an ISA to get tax free interest built up. Why is it not ?15k or ?20, that might actually encourage saving given interest rates are almost zero. My point is the government is clueless when it comes to encouraging the moderate earning populace to save. anybody know why the ISA limits is so low? Link to comment Share on other sites More sharing options...
Cow Posted February 22, 2009 Share Posted February 22, 2009 Given that the government now wants us all to save can anybody explain to me why ?3600 is the maximum you can out in an ISA to get tax free interest built up. Why is it not ?15k or ?20, that might actually encourage saving given interest rates are almost zero. My point is the government is clueless when it comes to encouraging the moderate earning populace to save. anybody know why the ISA limits is so low?[/QUOTE] Probably because they more tax free the saver gets the less the government gets. Link to comment Share on other sites More sharing options...
Tiberius Stinkfinger Posted February 22, 2009 Share Posted February 22, 2009 Given that the government now wants us all to save can anybody explain to me why ?3600 is the maximum you can out in an ISA to get tax free interest built up. Why is it not ?15k or ?20, that might actually encourage saving given interest rates are almost zero. My point is the government is clueless when it comes to encouraging the moderate earning populace to save. anybody know why the ISA limits is so low? To encourage spending is the answer to your question. Link to comment Share on other sites More sharing options...
Jam Tarts 1874 Posted February 22, 2009 Share Posted February 22, 2009 To make the ISA limits higher would just mean the already well off receiving even more tax breaks. ?3,600 tax free savings every year is reasonable, your partner could also save the same amount each year. There is also nothing stopping your from saving in a maxi ISA to increase the amount of tax free savings you are allowed. There are many other savings vehicles which if advised properly would mean you will be able to defer paying tax until you are no longer a basic or higher rate tax-payer such as Investment Bonds. Or if you like you can invest in OEICs and take advantage of your Capital Gains Tax allowance for you and your partner. There are also tax-free and tax-friendly savings available from the Government via your post office. In fact the total amount of tax free savings one individual can invest via national savings is ?90,000 (not including ISA). Also, if you are desperate to get tax breaks on saving larger amounts of money, then surely you should be contributing to a pension. In short, there are plenty of tax breaks out there to encourage savings. It seems you have not looked into this subject properly. Link to comment Share on other sites More sharing options...
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