RE: holding20 Jul 2020 21:43
Hi Tom,
I'm not a tax expert, but only throwing some thoughts out on the matter. However, it's certainly been mentioned for some years now in some of the financial media that the Government could introduce a lifetime cap on ISA savings in the future. You may well be correct in that it would not relate to anything held before such a cap, but I could see that being extremely complex. It would be easier to introduce the cap, together with an allowable amount for growth, with any gains above being taxed. If, when the cap was introduced, people had savings above the cap + growth allowance, then notice could be given that they must reduce their balances held or be taxed on returns on balances in the future.
As I say, I never put anything past government's when it comes to taxation, but, if you feel that it would not be legally possible to do this on ISA funds in place before a cap was introduced, you may be correct. In short I don't know.