ISA allowance

[Sterlo]

For some it is not 20k being saved every year but 20k they already have in savings accounts which are taxable so it makes sense (to me) to move 20k into an ISA each year. Myself and Mrs. C have just moved ours for this tax year.

I would add though we don't use ISA's etc to save we have all our accounts set up as monthly pay away into our current accounts and we spend the interest rather than "watch it grow"

Just as a point of interest does anybody else on here adhere to the 85k FSCS limit and consequently have multiple accounts with different banks / building societies?

Agree with your first point. We have maxed out a basic account on good interest rate up to the point we don't pay tax on it, then we've opened up an ISA each which is what we use for adding more saving to. I've also got some in premium bonds. As far as I'm concerned, I'm paying enough tax without paying it again on what I manage to save.
This is also why the pension tax annoys me, they say you get 20% added to your pension pot but then they tax you when you take it out (or at least so much of it). I would rather pay it at source so I know that what's in the pot is mine and not the taxman's.

 

[SpokeyDokey]

For some it is not 20k being saved every year but 20k they already have in savings accounts which are taxable so it makes sense (to me) to move 20k into an ISA each year. Myself and Mrs. C have just moved ours for this tax year.

I would add though we don't use ISA's etc to save we have all our accounts set up as monthly pay away into our current accounts and we spend the interest rather than "watch it grow"

Just as a point of interest does anybody else on here adhere to the 85k FSCS limit and consequently have multiple accounts with different banks / building societies?

Yes, we carefully observe the limit. We bank, save & invest with a lot of different institutions so it is important to us.

 

[SpokeyDokey]

As far as I'm concerned, I'm paying enough tax without paying it again on what I manage to save.

Fair point. Same here. I had a five year period between '99 & '04 when I was paying an eye-watering amount of tax and have no desire to pay any more tax than legally due on our various savings & investments.

Even in retirement we still shell out a fair chunk of tax pa on non-labour related income, so it's not like we aren't doing our bit.

And even when myself & Mrs SD have both departed IHT will claim some more.

My further thoughts are definitely NCAP territory so shut up I shall.

 

[BoldonLad]

Am i right in thinking then, if you had accrued say 100k into an ISA over several years, all the interest earned each year is tax free?
Plus the possible £1000 interest allowance on non ISA savings, as mentioned above?

PS - I'm at the thin end of the wedge, IFA fees would cancel out any potential tax savings.

Yes.

Plus, if it is a stocks and shares ISA it is capital gains tax free .(assuming you have made a gain), and, there is no further tax on dividends.

I haven’t investigated fully, because I am too old to take part, but, I believe “lifetime ISAs” have even more perks, but, some restrictions too.

 

[BoldonLad]

AFAIK there is no legal basis for a probate threshold - it varies between different financial entities.

Generally, in very small estates eg sub £10k, probate is not even considered.

Not uptodate on current rules, but, when my late mother died, (leaving less than 10k and no will), I was able to access her bank account on production of a death certificate.