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Some talk about capping ISAs at some maximum investment level, £100k and £250k have both been mooted, as apparently there are now quite a few "ISA millionaires".

As an aside I'm astonished that anyone has built up ISA pots of £1m+.

I've invested the full amount every year 100% in equities since the early days of PEPs, and despite slightly outperforming the market consistently over that time I'm still well shy of £1m in my ISA pot! However, I've heard from many sources that there are now more and more ISA millionaires out there, so hey ho I guess I'm just not the investor I thought I was!

Anyone any thoughts on this, especially as more and more people are now using ISAs as their main pension planning vehicle plus there are, I believe, ISA linked mortgage schemes?

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Some talk about capping ISAs at some maximum investment level, £100k and £250k have both been mooted, as apparently there are now quite a few "ISA millionaires".

As an aside I'm astonished that anyone has built up ISA pots of £1m+.

I've invested the full amount every year 100% in equities since the early days of PEPs, and despite slightly outperforming the market consistently over that time I'm still well shy of £1m in my ISA pot! However, I've heard from many sources that there are now more and more ISA millionaires out there, so hey ho I guess I'm just not the investor I thought I was!

Anyone any thoughts on this, especially as more and more people are now using ISAs as their main pension planning vehicle plus there are, I believe, ISA linked mortgage schemes?

I can't see them using cash ISA's for much. You have a hard job getting 2.5%. Less than inflation.

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I heard on the radio one fund manager mentioning a client with a £3m ISA!

I'd be royally annoyed if it was capped at a either of the levels you mention. It's a lifetime saving and non-transferrable so it's not as if the amount of ISA savings will increase in perpetuity, they'll keep going up for a bit then plateau.

Although (whisper it...) if a low limit got brought in and I had to pull it out then it may go into a house.

You'll have more than me as I have had lengthy periods of not working (by choice) when I wasn't putting any in.

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Found this fountain of ISA statistics whilst googling to try to substantiate these claims of multi-million ISA owners. Various interesting stats dividing ISA subscription rates by year, gender, income bands, geographical region. Well worth a look.

Also found this on the Telegraph How to save a million-pound Isa.

In fact, stockbroker Brewin Dolphin says one of its customers has an Isa fund worth more than £6m. And he is not alone. The stockbroker says it has 17 clients with Isas in the million-plus bracket. Other wealth managers, such as Barclays Stockbrokers, Redmayne Bentley and Killik, say they have customers with similar Isa portfolios.
Mr Dennehy calculated that over this 26-year period the best-performing fund has been Fidelity’s Special Situations Fund, managed by Anthony Bolton until 2007.

If investors had put their allowance solely into this fund each year they would now be an Isa millionaire, with a pot worth £1.16m – which means investors have made a profit of £967,520.

All so easy in hindsight :)

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This book profiles 12 private investors. Each of them has accumulated £1m or more – in most cases considerably more – mainly from stock market investment. Six are "ISA millionaires" who have £1m or more in a tax-free Investment Savings Account (ISA), a result which is arithmetically impossible without exceptional investment returns.

http://www.guythomas.org.uk/investment/freecap.php

What price can I have that at least one of the 12 posted on here?

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Wouldnt surprise me if they did. They want to enhance properties hegemony as the only asset to build equity tax free.

Own a £1mn house...all profits tax free.

Own £500k house and have £500k of stocks...we'll tax you on half your wealth.

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What price can I have that at least one of the 12 posted on here?

Statistically, given the number of people with ISAs, one would expect a very thin tail to have outperformed to the extent of > £1m (you could probably do it or come close anyway with for, instance, AAPL alone , though I've not checked).

What is highly unlikely however is for 6/12 to have done so unless they were pre-screened on that basis.

In any event, the takeaway is not to use tax efficient wrappers for benchmark investments (FTSE100 etc) but to use them exclusively for high risk punts to benefit from the compounding tax relief. Which is no doubt why they were created in the first place. i.e. as a tax dodge for speculative high net worth bankers, rather than their pretended audience of middle class strivers.

EDIT:

Stats/charts here:-

http://www.hmrc.gov.uk/statistics/isas/statistics.pdf

Chart 5 shows details of the 24.4 million adult ISA holders analysed by income band for the year 2010-11. The majority of ISA holders (a little over 7 million) had annual incomes of

between £10,000 and £19,999, with ISA savings averaging around £14,950. At higher

earnings levels the number of ISA holders declines but is accompanied by a pronounced

rise in average ISA savings values. For ISA savers with incomes of £150,000 or more ISA

savings at the end of 2010-11 averaged £45,780

Chart 7 below shows that the amounts subscribed to an ISA increase with the income of the subscriber. Although taken as a whole only 7 per cent of subscribers saved at the maximum in 2010-11 this proportion rose to 29 per cent for those with incomes of between £100,000 and £149,999, and to 43 per cent for those with incomes of £150,000 or more. A fairly steady proportion – around 33 per cent – of ISA savers saved between £4,000 and £5,999

regardless of income group, although the highest proportion of savers – around 40 per cent

– saved only between £1 and £1,999.

more at the link.........

Edited by R K

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