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32% tax on savings interest?
Comments
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Thanks for the info both.Nobody wants to but it isn't always possible to avoid it.
I think if I was beyond ISA limits, my next port of call would be to invest and use the CGT allowance and then "bed and breakfast" each tax year to utilise the £10K CGT allowance.
But thanks for the info as there are clearly scenarios that I had not considered (or people with more money that I thought :-)0 -
I think Iain Duncan Smith particularly hates the early retired. Unlike the sick, the job-seekers and the unemployable, we have the least excuse for not working.This could be a real bombshell for the early retired."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
I think Iain Duncan Smith particularly hates the early retired. Unlike the sick, the job-seekers and the unemployable, we have the least excuse for not working.
Then again you won't be claiming any benefits, and still spending to help the economy, if you got a job, that would would be one more on the dole and claiming because you would have displaced someone. On the other side of the coin, if you were potentially a successful entrepreneur you could be creating jobs.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
This could be a real bombshell for the early retired.
My first thought was that the 18% (top rate) tax you pay on savings in Spain is looking very attractive at the moment (after retirement)Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
I think Iain Duncan Smith particularly hates the early retired. Unlike the sick, the job-seekers and the unemployable, we have the least excuse for not working.
Maybe it is another way of attacking public sector workers after many are pitched out of their jobs via early retirement, first CPI then 32% tax on income.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
this sounds like government misinformation - maybe there is going to be some bad news for savers in the budget, they hope we will think "at least its not a 32% tax"0
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Thanks for the info both.
I think if I was beyond ISA limits, my next port of call would be to invest and use the CGT allowance and then "bed and breakfast" each tax year to utilise the £10K CGT allowance.
But thanks for the info as there are clearly scenarios that I had not considered (or people with more money that I thought :-)
Those of us who need the income from our savings don't have as much choice.0 -
DavidHayton wrote: »If this happens then there is even more reason to get as much as possible within an ISA.
Fine until the treasury decides to remove the tax free status of ISA's!
There is no cast iron guarantee that they have to keep ISA's tax free AFAIAA.0 -
That may be true but I think the likelihood of existing ISAs being stripped of their tax free status is very very low especially as one of the aims of government is to increase long term savings. What is more likely to happen is that new ISAs are stopped at some point but the latest proposal is for child ISAs which would actually extend them further.Fine until the treasury decides to remove the tax free status of ISA's!
There is no cast iron guarantee that they have to keep ISA's tax free AFAIAA.Remember the saying: if it looks too good to be true it almost certainly is.0 -
The tax on savings interest is 10% (up to £2440 above your personal allowance for savings interest only) and 20%. The 20% just now happens to coincide with the basic rate of tax but hasn't always. It was 20% whilst the basic tax rate was 22%.
So amalgamating tax and NI doesn't have an automatic read across to an increase in the basic rate of TDSI (tax deduction scheme for interest).If you want to test the depth of the water .........don't use both feet !0
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