Lifetime ISA

[AtW]

So, Budget 2016 introduces new Lifetime ISA for under 40s - £4000 max per year, £1000 topped up by Govt - essentially 20% tax relief.

Active from April 2017 - that's the future of "pensions" with 20% tax relief available on very limited amount of contribution. He'll be doing the royal shafting as soon as referendum malarkey is over...

[barrydidit]

25%

[Eirikur]

Not really tax relief but a subsidy
Or theft from older taxpayers

[barrydidit]

I wonder, given our whinger in chief Mauve Monkey has outed himself as being 38, whether he will be too old to take out one of these when they are implemented. The irony would be ironic.

[DimPrawn]

Not really tax relief but a subsidy
Or theft from older taxpayers

BOTP

Bank of Tax Payers.

[AtW]

25%

20%: £5000 gross, taxed at 20% - £4000 net

But I have no doubt the Govt will spin it as if they were giving 25% extra...

[AtW]

Not really tax relief but a subsidy
Or theft from older taxpayers

That's exactly what Govt wants to call it - subsidy, which is a clear sign they were going to feck up tax relief for pensions completely, they've just launched 2nd element because 1st was impossible due to referendum, but it's coming soon!

[vetran]

Surely Ageist and therefore illegal?

Why didn't they make it X% after 2 years Y% after 10 years etc?

[barrydidit]

20%: £5000 gross, taxed at 20% - £4000 net

But I have no doubt the Govt will spin it as if they were giving 25% extra...

Yes "£1 for every £4 saved" was the mantra yesterday.

Wonder if you can put another £20k in a proper ISA?

Wonder if you can have a proper ISA at all if you have one of these?

[AtW]

Yes "£1 for every £4 saved" was the mantra yesterday.
Wonder if you can put another £20k in a proper ISA?
Wonder if you can have a proper ISA at all if you have one of these?

At the moment the answer is yes.

So what will happen with pension relief is this:

1) "Lifetime ISA" will be extended to all ages, except pensioners - tiny annual limit to save and "25%" bonus
2) Bigger ISAs without "bonus" to save

Coming soon ...