Reply to: Doom III

[AtW]

Did your bit? But you have already conceded that nobody on planet Earth knew about your "protest".

My protest was a logical move that any long-term strategist would make. I don't need to advertise it, it's something people should be taught in school.

[Bob Dalek]

Because those poor souls that took up on this pathetic offer from Govt helped Govt justify existance of the offer. If it was boycotted by majority then they would have to improve it substantially.

Same with houses - if enough people refused to get so much in debt to buy a house then houses would never reach current levels even if banks offered 125% morgages.

This kind of logic should be taught in schools - that's the only way society can avoid such major pitfalls.

In any case I feel that I did my bit on both counts.

Did your bit? But you have already conceded that nobody on planet Earth knew about your "protest". By missing the simple step of advertising your "protest", you have, in effect, made a big dog egg of your whole plan. Sorry, but that's the sad, yet hilarious, truth.

[AtW]

But I accept you couldn't if you didn't have the funds at the time.

Well I did have funds, but I certainly did not like idea of share ISAs and cash ISAs in my view were insultingly small and I did want to lock in money into scheme that might not be liquid. Savings account did it for me.

[Doggy Styles]

Because those poor souls that took up on this pathetic offer from Govt helped Govt justify existance of the offer. If it was boycotted by majority then they would have to improve it substantially.

Same with houses - if enough people refused to get so much in debt to buy a house then houses would never reach current levels even if banks offered 125% morgages.

This kind of logic should be taught in schools - that's the only way society can avoid such major pitfalls.

In any case I feel that I did my bit on both counts.

That's true over the last two or three years, but if you'd purchased six years ago before the price boom really got going you'd be quids in, even after the slump.

But I accept you couldn't if you didn't have the funds at the time.

PEPs were simply a way of saving long-term which, over time, would give a much better return than a deposit account. I think they were a good idea.

[AtW]

So why "protest"?

Because those poor souls that took up on this pathetic offer from Govt helped Govt justify existance of the offer. If it was boycotted by majority then they would have to improve it substantially.

Same with houses - if enough people refused to get so much in debt to buy a house then houses would never reach current levels even if banks offered 125% morgages.

This kind of logic should be taught in schools - that's the only way society can avoid such major pitfalls.

In any case I feel that I did my bit on both counts.

[Bob Dalek]

Govt did not give a tulip. That's what Govts do.

I did not even try to buy house in the UK because prices were overinflated - I have exercised correct judgement in the face of temptation and only wish more people did the same.

So why "protest"?

[AtW]

I imagine that the Gov's near-implosion upon learning of your heroic protest will be made public, one day. Bravo, AtW!

Govt did not give a tulip. That's what Govts do.

I did not even try to buy house in the UK because prices were overinflated - I have exercised correct judgement in the face of temptation and only wish more people did the same.

[Bob Dalek]

Well, I did not start earning half decent money until 2000, and I felt that having cash in bank was preferable to being involved in these schemes.

It was also part of my protest against Govt policies regarding savings so I did not use their ISAs. £7k was shares option which I did not want to get into and £3k cash ISA was laughable size in my view, small enough to make point of principle not to use it for sure.

Interest rates on savings should have been 0%.

I imagine that the Gov's near-implosion upon learning of your heroic protest will be made public, one day. Bravo, AtW!

[AtW]

If you'd used your full limit every year since PEPs/ISAs came out (1990?), with the compound growth you'd have a very decent fund by now.

Well, I did not start earning half decent money until 2000, and I felt that having cash in bank was preferable to being involved in these schemes.

It was also part of my protest against Govt policies regarding savings so I did not use their ISAs. £7k was shares option which I did not want to get into and £3k cash ISA was laughable size in my view, small enough to make point of principle not to use it for sure.

Interest rates on savings should have been 0%.

[Doggy Styles]

AIUI capital gains are still tax-free in an ISA (and never were in a pension), what has changed is that the notional dividend tax credit can no longer be reclaimed in an ISA or a pension.

Thanks for clarifying that. I didn't mean to imply that the pension situation was the same, only that its reliefs were also raided.

[expat]

On ordinary savings accounts, yes, interest was taxed as it is today.

But not in PEPs, where capital gains used to be tax free. They were also tax free in ISA funds when they first replaced PEPs but, like pensions, not any more.

AIUI capital gains are still tax-free in an ISA (and never were in a pension), what has changed is that the notional dividend tax credit can no longer be reclaimed in an ISA or a pension.

[Doggy Styles]

Was there a limit on PEPs like there is on ISAs? I never put any money into latter as I did not like the idea of my savings being tied up in this scam scheme of Labour (cash ISAs were okay but the max allowed amount was laughable).

Yes, there was a limit on PEPs. I can't remember what it was when they were abolished, but probably about £5K a year. I think ISAs are £7K.

If you'd used your full limit every year since PEPs/ISAs came out (1990?), with the compound growth you'd have a very decent fund by now.

[AtW]

But not in PEPs, where capital gains used to be tax free. They were also tax free in ISA funds when they first replaced PEPs but, like pensions, not any more.

Was there a limit on PEPs like there is on ISAs? I never put any money into latter as I did not like the idea of my savings being tied up in this scam scheme of Labour (cash ISAs were okay but the max allowed amount was laughable).

[Doggy Styles]

Was there a tax on interest earned on your savings before Labour Govt?

IMO this tax is a big put off, practically theft especially considers that high tax rate payers would have to pay extra tax on top.

On ordinary savings accounts, yes, interest was taxed as it is today.

But not in PEPs, where capital gains used to be tax free. They were also tax free in ISA funds when they first replaced PEPs but, like pensions, not any more.

[expat]

Was there a tax on interest earned on your savings before Labour Govt?

IMO this tax is a big put off, practically theft especially considers that high tax rate payers would have to pay extra tax on top.

Yes, there always has been.