No tax on savings......

ed123_2

:money: :eek: ....I think I've become a tory.......one of their new tax ideas....

Lokolo

URL?

And I don't pay tax on savings at the moment anyway.... so meh!

RayWolfe

Great idea for the multi-millionaires. Let's hear it for the seriously rich.

LesU

Would that mean we could give up using those restrictive, cumbersome and downright annoying Cash ISA's? The type of account that has to be used by us non-multimillionaires.

Masomnia

URL is here:

http://news.bbc.co.uk/1/hi/uk_politics/7801689.stm

Dualcyclone

Ignore it - where they cut tax, they'll have to recoup it in other taxes; I'd half expect them to increase the tax on earnings to make up for this cut, so it makes no difference.

Its a big hype; but would benefit pensionners and multi-millionnaires! And would benefit anyone who have got large savings pots.

LesU

Dualcyclone wrote: »

Ignore it - where they cut tax, they'll have to recoup it in other taxes; I'd half expect them to increase the tax on earnings to make up for this cut, so it makes no difference.

Its a big hype; but would benefit pensionners and multi-millionnaires! And would benefit anyone who have got large savings pots.

I can assure you that the average multi-millionaire is not waiting for any Government to stop taxing savings. They employ extremely clever people to move their money around for them in many mysterious, but ultimately tax avoiding ways.
Which just leaves the pensioners and the people who didn't throw their money away during the 'boom' times.
Perhaps the extra taxes, if needed, could be directed towards those who spent recklessly, having a good time and buying bigger and bigger cars and houses they couldn't afford.

Dualcyclone

LesU wrote: »

I can assure you that the average multi-millionaire is not waiting for any Government to stop taxing savings. They employ extremely clever people to move their money around for them in many mysterious, but ultimately tax avoiding ways.
Which just leaves the pensioners and the people who didn't throw their money away during the 'boom' times.
Perhaps the extra taxes, if needed, could be directed towards those who spent recklessly, having a good time and buying bigger and bigger cars and houses they couldn't afford.

Very true about the multi-millionnaires; If I was one, I'd have all my savings tied up in a tax haven, not here!

But I don't see the government putting more tax on the things you mention; that'd hit not only the people who take pleasure purchasing such commodities, but it would also hit industries that employ a lot of people; in these rocky times, putting more tax on cars and houses would make no viable economic sense. I can only see an increase in tax as a broad sweep in one way or another, be it through taxation on earnings, or increase in council tax.

I'm going to push the boat out and say I think the tories might be able to put us back into a stable economy, and probably help reduce this enormous national debt we seem to have haemorraged in recent times - but I don't see tax cuts as anything more than a way to employ voters.

cos69

George Osborne says "he would aim to cut income tax on savings and the tax burden on the over-65s" which is not the same as "No tax on savings".

This could be as simple as increasing the current limit on the 10% savings tax band which would affect very little in the way of tax revenue, or better still limiting the tax on savings to 10% or 20% on all savings or restricting such a level to those not paying tax on earnings at the higher tax band.

What you wont get is unlimited tax free income from savings no matter how much we deserve it

LesU

Of course another way of looking at the tax promise is that, by the time the Tories could implement it, savings and rates will be so low that the tax revenues will be insignificant. The few people who haven't raided their savings to cope with redundancy, pay cuts etc will be earning 1-2% max. It will probably be more expensive for the banks to maintain ISA's and gather the savings taxes for transfer to the Government, than the income it generates.

ed123_2

...Weeeeeeeeeeell in the Telegraph article it refers to removing all tax on savings and does not limit this to the over 65's.....(can't do link)