ISAs have become a tool for tax planning for the wealthy, so they are on Richard Murphy’s list of proposed tax changes which will form his Taxing Wealth Report 2024.
He has suggested that a lifetime limit on ISA contributions of £100,000 be set and that ISA tax relief should be withdrawn from those who have more than £200,000 in such accounts.
Murphy said the changes would help to “prevent abuse as much as to raise revenue”. The total tax raised might be £100 million a year.
The seven recommendations now made as part of the Taxing Wealth Report 2024 would, taking this latest proposal into account, raise total additional tax revenues of approximately £70.3 billion per annum.