Cameron to scrap taxes on savings (basic rate only)

jamieslucky7

http://news.bbc.co.uk/1/hi/uk_politics/7810932.stm

I think this is great news for savers, considering most feel hard done by every time BOE drop the interest rate a little further.

Masomnia

Hmm well, as has been pointed out on the other thread, this only applies to basic rate tax payers, who can use ISAs anyway.

So the first £3,600 of your long term savings are tax free anyway. (I accept that instant access, short term savings will benefit more.) So that's - if you're a basic rate tax payer - around 10% of your income. After tax, nat. insurance, pension contributions, and all other outgoings, how much over 10% of your income do you save? Not a huge amount for most people.

It's a nice story for headline grabbing aren't-we-more-caring-than-Labour purposes, but I don't think it's significant at all.

The raising of tax-free allowances for pensioners is a good move though.

Reaper

Sorry, but in my view that is the wrong thing to do in a recession. He is going to encourage personal saving (and therefore reduce spending making the recession worse) and fund it by cutting governement expenditure (also making the recession worse).

Measures to encourage saving instead of spending would have been the right ones previously when the economy was overheating, it is precisely the wrong thing to do now it has crashed.

ozzage

So... every bank account is an instant Cash ISA now?

Except for HRT like me? Would we still be paying 40% then?

ozzage

Masomnia wrote: »

how much over 10% of your income do you save? Not a huge amount for most people.

It's a nice story for headline grabbing aren't-we-more-caring-than-Labour purposes, but I don't think it's significant at all.

There are plenty of people who have thousands of pounds of savings and are BRT. eg those saving for a house deposit.

Calchas

ozzage wrote: »

Except for HRT like me? Would we still be paying 40% then?

No. 60%

You have to take up the 20% slack :rotfl:

ozzage

Calchas wrote: »

No. 60%

You have to take up the 20% slack :rotfl:

That's a relief I hate to be left out of something like this :rolleyes:

Inactive

Cameron ain't going to do anything, he isn't in a position to do anything.

Blatant electioneering.

With George Osborne at the helm, I don't hold out much hope for him anyway.:rolleyes:

bristolleedsfan

Inactive wrote: »

Cameron ain't going to do anything, he isn't in a position to do anything.

Blatant electioneering.

With George Osborne at the helm, I don't hold out much hope for him anyway.:rolleyes:

Labour will steal any Tory vote winning ideas anyway. :rotfl:

libra10

As pensioners, this would be a vote winner for us. We have saved through our lives and now receive basic state pensions, plus OH receives a couple of small annuities.

We have contributed to Tessas, then ISAs through the years but still pay tax on the interest earned from other savings.

It would be a policy to reward those who have been responsible with their money and are therefore not eligible for benefits. Especially at a time when interest rates are diving.

Lokolo

It would be a nice thank you to most savers. I save but don't earn enough to get taxed and put a lot of my money in ISAs anyway

However if they keep it for the next 5 years I will be happy!