Will The ISA Suffer in the Budget

7th October 2024

Labour has made much of its pre election promise not to touch taxes that would affect working people like income tax or VAT. That leaves limited choices after cutting off the biggest sources to hit. ISAs in total are estimated to provide £7bn of relief so changes there could provide significant savings for the treasury.

Capital Gains and Inheritance changes will not on their own provide the levels need to close the gap in the famous black hole.

With debt levels now exceeding over 100% of GDP in the UK many stones look more likely to be turned over to change that number.

A plan suggested by the think tank Resolution Foundation was to set a £100k cap on ISA accounts.

A £billion might be taken from ISA reliefs making them less fruitful for investors looking for a home for their money particularly many in retirement.