Tories seek to abolish tax on savings for basic rate tax payers...............

Sceptic001

Before you all rush to close your ISAs I think the OP should state where he saw this alleged Tory pledge. There are articles in the Telegraph and the Indy about Tory tax plans, but neither contain this pledge.

And in any case, if the Tories win they will inherit a £178 billion deficit. They are not going to add another £4 billion by implementing this policy. I think the OP is taking the mickey.

Jonbvn

StevieJ wrote: »

The cash ISA has other advantages e.g. it doesn't count towards restriction of age allowance.

Noted, but hardly a biggee. BTW, ISA income is also disregarded for WTC/CTC.

If this came to pass, I certainly wouldn't close our cash ISA's. However, all future investment would be 100% in S&S ISAs, which is our plan for the next few tax years anyway.

Masomnia

I don't really see the point. £5,100 per year in savings is going to be over 10% of an income that is liable for basic rate. I doubt many people save that much, outside this forum at least. So if you can save that muc tax free anyway it will help very few people, and for the money it will cost, it becomes just a nice soundbite.

Not to mention the fact that it will dis-incentivize people from working harder and earning more, as they already are by working tax credits.

dougs

adambro wrote: »

it seems odd to do something which only benefits people with savings.

so with the record all time low level of interest rates for the last year, it's ok to do something that only benefits people with borrowings is it.....

baby_boomer

Perhaps they're having a guilty conscience about the [savings' destructive] inflation that will be unleashed unless they really tackle the deficit soon?

Masomnia

dougs wrote: »

so with the record all time low level of interest rates for the last year, it's ok to do something that only benefits people with borrowings is it.....

Adding (at least) £4,000,000,000 to the deficit benefits no one. This measure would only benefit a very small minority of savers I should imagine.

In any case it isn't mentioned in either article... funny that, they proposed it a few months ago. Now 'it wasn't a pledge'.

adambro

dougs wrote: »

so with the record all time low level of interest rates for the last year, it's ok to do something that only benefits people with borrowings is it.....

Borrowers benefiting from lower interest rates was a consequence of the BoE's decision to lower the base rate in order to try to stimulate the economy. The government didn't deliberately set out to help borrowers so no reduction in tax revenue can be attributed to any decision. The situation here is completely different.

chopperharris

Promises are exactly that , then eventually nothing if they are not implemented.

So far in the last week or so we have had "the law should protect those that protect themselves from intruders" , savings tax free , one more thing left for pensioners is the prescription charges and the pensioner vote from their pockets once more....and if mem serves the highest percentile of voters are pensioners.

Pity that the pensioners will get shafted elsewhere in some way , like robbing the corporate pensions funds , increasing the retirement age to when both your parents can sign the forms when you reach 75 , state pensions must be matched with private ones , doctors appointment charges , care insurance etc.

How about tax on heating refunded next , hot and cold running antiques roadshow , queue jumping , firing squads for illegal immigrants and having loud stereos in cars and i think cameron has it sewn up.

ed123_2

.......a chav tax would be good........vat to 20%, capital gains tax to 40%, windows tax, air tax etc etc.......~<:-)