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The end is nigh for Premium Bonds?
Gorgeous_George
Posts: 7,964 Forumite
With David Cameron scrapping tax on savings, will this be the end for Premium Bonds?
(The tax benefit was the main reason that rich people liked them).
GG
(The tax benefit was the main reason that rich people liked them).
GG
There are 10 types of people in this world. Those who understand binary and those that don't.
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Savings tax was to remain for higher rate taxpayers though.0
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And how is he going to scrap it when he is NOT in Government!0
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The problem with just scrapping premium bonds is the destabilising effect the sudden outflow of savings to other (non-government) products it would cause - effectively transferring another £30bn onto the national debt overnight. If anything, in these straightened times, they must be tempted to offer a '1 for 20' sale to attract inflows.
..but on the other hand the govt says it wants us to go out and spend our money (they mean the money not held by them of course!)
..but back to your original point; yes, scrapping tax for most savers will make PBs unsaleable (so, probably just an unintended consequence the Tories didn't spot before they came up with the idea).....under construction.... COVID is a [discontinued] scam0 -
Premium bonds are only any good as an investment for those who pay higher rate of tax. Anyone else will buy them for the chance of winning big, so I can't see them withdrawing as a result of this.“I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse0
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arealhighlander wrote: »And how is he going to scrap it when he is NOT in Government!
Exactly, Mr Cameron can say anything he wants to whilst in opposition.
FWIW I suspect that Super Gordon has been considering a similar move anyway and the Tories have wind of this and are getting in early so they can say Labour got the idea from them, in an interview yesterday GB said that he is working on help for savers.0 -
I don't think it would make a lot of difference to PMs really, most people who buy bonds think they have a chance of winning!:DGorgeous_George wrote: »With David Cameron scrapping tax on savings, will this be the end for Premium Bonds?0
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