The time has come to completely scrap tax on savings

[Deleted User]

The time has come to completely scrap tax on savings. Enough is enough. Savings should not be taxed, period - It's daylight robbery in my book. There would be no need for cash isa's, which let's be honest, are a pain in the a**e; and we could all live happily ever after - Hurrah!:D

The way things are going, banks will be charging us for "saving" with them soon!:rolleyes: :eek:

Lokolo

Savings aren't taxed atm anyway. What are you on about?

baby_boomer

Over 30 years, a couple can shelter £216,00 from tax at today's values and using today's £3,600 ISA allowances.

[Deleted User]

Lokolo wrote: »

Savings aren't taxed atm anyway. What are you on about?

20% ring any bells...?!:rolleyes:

Lokolo

Deleted_User wrote: »

20% ring any bells...?!:rolleyes:

Thats on the interest, not on the savings..... :rolleyes:

[Deleted User]

Lokolo wrote: »

Thats on the interest, not on the savings..... :rolleyes:

Grow up! Talk about splitting hairs:rolleyes: You know exactly what I'm on about.

Aegis

Deleted_User wrote: »

The time has come to completely scrap tax on savings. Enough is enough. Savings should not be taxed, period - It's daylight robbery in my book. There would be no need for cash isa's, which let's be honest, are a pain in the a**e; and we could all live happily ever after - Hurrah!:D

Why? What's your justification? Why should the interest on savings not be taxed when pretty much all other forms of income are?

On top of that, where are you going to generate the lost tax revenue from savings? Admittedly there isn't much revenue now because of the low interest rates, but when they rise up again that's a huge chunk of lost tax revenue that the government would have to take from elsewhere. Where would you recommend?

The way things are going, banks will be charging us for "saving" with them soon!:rolleyes: :eek:

Who knows, it might do. Things work that way in many other countries around the world. However, I think it is unlikely due to the long-held belief that free banking is a right here in the UK.

LesU

Aegis wrote: »

Why? What's your justification? Why should the interest on savings not be taxed when pretty much all other forms of income are?

How about making income from savings being treated the same as Capital Gains. If I buy a painting, keep it and then sell it at a large profit I get £9600 allowance for each year ( with time restrictions) that I kept the painting until I disposed of it.
Why shouldn't the earnings from cash in the bank be treated the same way?

Lokolo

LesU wrote: »

How about making income from savings being treated the same as Capital Gains. If I buy a painting, keep it and then sell it at a large profit I get £9600 allowance for each year ( with time restrictions) that I kept the painting until I disposed of it.
Why shouldn't the earnings from cash in the bank be treated the same way?

We do, its called an ISA.

masonic

Deleted_User wrote: »

Grow up! Talk about splitting hairs:rolleyes: You know exactly what I'm on about.

Actually, it's a significant difference. If people really were being taxed on their savings, then that would be somewhat unfair. As it is, some people are able to live off an income from a lump sum of money. Why should those people get tax breaks over those who work for a living?

masonic

LesU wrote: »

Why shouldn't the earnings from cash in the bank be treated the same way?

Everyone has a tax-free allowance, which allows them to receive some income tax free. After that, as Lokolo says, there are ISAs.