March Budget 2016

Chris1712 · 16 Mar 2016 at 14:37

Why would you use the Lifetime ISA over Pension + HTB ISA? You only get the bonus after 60, or if you use it towards a house.

alx · 16 Mar 2016 at 14:37

platypus said:
"Tax cut for North Sea oil industry"

Great, lets carry on funding this industry. Do we not give it enough already? At least they're no longer pretending they're a "green" government.

It's a long term view to try and make sure investment doesn't completely disappear during the low oil price. Over the years various taxes have been added on to the oil industry so the profits are fairly highly taxed, fine when the price is high but not so good when a lot of companies struggle to even make a profit currently.

Mr Jack · 16 Mar 2016 at 14:38

Moses said:
A huge number of people can't on their own, but if you add in those with well off parents/grand parents/family who've done well out of excellent pensions and rising house prices, I imagine the number who could make use of the Lifetime ISA bonus goes up significantly. No idea how to check that, though .

Yeah, I expect so. It's another Conservative scheme that mostly benefits people who already better off.

DrBombcrater · 16 Mar 2016 at 14:38

rubberduck said:
Wonder if soft drink maufacturers might start producing 'add your own sugar', alternative soft drinks in order to avoid the tax, much like 'shake 'n' salt crisps'.

Looking at the ingredients list of the very cheapest soft drinks shows what they'll do; remove the sugar and substitute it with artificial sweeteners like Aspartame, which taste disgusting and are of dubious safety.

MookJong · 16 Mar 2016 at 14:39

ISA is wonderful...

The wife and I will be signing up at the first instance!

muon · 16 Mar 2016 at 14:41

Chris1712 said:
Why would you use the Lifetime ISA over Pension + HTB ISA? You only get the bonus after 60, or if you use it towards a house.

Well the 25% bonus makes it worthwhile over pension via salary sacrifice even if you are a higher rate tax payer doesn't it. You then have the potential to use it for a house or generally have something you can draw upon before retirement if you really need to.

This is assuming you would pay a basic rate on retirement on any pension normally.

benhaha85 · 16 Mar 2016 at 14:41

Chris1712 said:
Why would you use the Lifetime ISA over Pension + HTB ISA? You only get the bonus after 60, or if you use it towards a house.

Yes I'm wondering this too. Although I'm already a homeowner so can't get a HTB ISA I can't see why I'd use the new isa over getting a pension.

Also, how will this affect the auto pension enrolment? I can't see many people being able to afford to pay into both.

mrbios · 16 Mar 2016 at 14:43

So presumably in April 2017 i can open a lifetime ISA, move it all across and reap the rewards?

Am i right in thinking that government benefit from that ISA is a helping hand that only comes into effect when you meet the criteria of a home purchase or retirement and can't necessarily be considered a part of a persons ISA balance? Otherwise i can see that being open to abuse...

EDIT:

Chris1712 said:
Why would you use the Lifetime ISA over Pension + HTB ISA? You only get the bonus after 60, or if you use it towards a house.

Nevermind, you've just answered that for me

As someone with £12k in an ISA, saving for a house, this comes at perfect timing for me. The first bit of genuinely good news i think i've ever had from a conservative government.

Eurofighter · 16 Mar 2016 at 14:43

How can they increase the rate at which high earners pay tax yet cut PIP. I have schizophrenia and don't get much as it is. I wish I was healthy enough to work but I am not.

MookJong · 16 Mar 2016 at 14:44

Skillmister said:
Hundreds, thousands, millions of people manage to consume sugar in moderation without getting fat so why should it be more expensive for them because some can't?

People also get fat from crisps. Should we have a potato tax?

Sugar is damaging, it causes many health problems and costs the NHS a fortune. It is being taxed in the same way as cigarettes. People will look back in a few years and be shocked at how much unregulated sugar we were allowed to consume.

platypus · 16 Mar 2016 at 14:47

The lifetime isa: another tax funded crutch for the property market instead of actually tackling the problem?

John40 · 16 Mar 2016 at 14:47

VincentHanna said:
Because they vote Conservative.

Poor people are pretty comfortable? Wow.

Poor people if you could call them poor in this country are very comfortable, I have travelled a hell of a lot and poor is not being unable to have the latest 500 quid phone.

The so called poor in this country have a very very decent life compared to really poor people.

Kronos · 16 Mar 2016 at 14:48

Anyone hear George Osborne thanking the sick, the poor and the disabled for shouldering the most burden of cuts to public spending in the last 8 years?

muon · 16 Mar 2016 at 14:49

platypus said:
The lifetime isa: another tax funded crutch for the property market instead of actually tackling the problem?

Correct.

Indirectly propping up the prices (or increasing further) the asset values of all homeowners!

Lifetime ISAs will increase demand, and guess what will happen to the price.

Neil79 · 16 Mar 2016 at 14:50

Kronos said:
Anyone hear George Osborne thanking the sick, the poor and the disabled for shouldering the most burden of cuts to public spending in the last 8 years?

Nope...

Although John40 seems to be one of his best mates :rolleyes:

robj20 · 16 Mar 2016 at 14:52

muon said:
It's hilarious isn't it. It might actually be beneficial to borrow money to take advantage of the Lifetime ISA. 25% bonus and ongoing interest.

It also builds up long term liabilities for the government when pensions are also expected balloon.

There is no mention of what your money is doing for the ten years between 50 and 60 years of age, do you get any interest or is the pot frozen. Nice loan for the government for ten years.

VincentHanna · 16 Mar 2016 at 14:53

John40 said:
Poor people if you could call them poor in this country are very comfortable, I have travelled a hell of a lot and poor is not being unable to have the latest 500 quid phone.

The so called poor in this country have a very very decent life compared to really poor people.

Obviously comparing the poor in Western society vs the poor in India is massively different.

That's why people don't.

VincentHanna · 16 Mar 2016 at 14:54

Anyway - Can you have a Help to buy ISA and a Pension ISA?

Not that I could afford it, but I'm sure some could.

muon · 16 Mar 2016 at 14:54

robj20 said:
There is no mention of what your money is doing for the ten years between 50 and 60 years of age, do you get any interest or is the pot frozen. Nice loan for the government for ten years.

So anything you have put in is your money. It will always earn interest.

The government bonus also accrues interest, but if it doesn't between 50 and 60 that is hardly a dealbreaker. You never had that money to begin with.

edit:

Reading the leaflet, the bonus will continue to receive interest between year 50 and 60. You just won't get additional bonuses for anything you put in then.

robj20 · 16 Mar 2016 at 14:58

muon said:
So anything you have put in is your money. It will always earn interest.

The government bonus also accrues interest, but if it doesn't between 50 and 60 that is hardly a dealbreaker. You never had that money to begin with.

What interest rate, before signing up you would need to know, otherwise it might be best to overpay your mortgage and/or fix in a normal isa should you finish paying the mortgage.

For instance instead of this if i overpay by the 4k i save around 20k in interest on the mortgage, also pays it off 12 years faster. So not worth it for me.