10% Tax band

StevieJ

I picked this up on the Citywire blog, is this true?



In Brown’s speech yesterday the 10% band was removed for all eared income. I checked the red book and sure enough point A.10 clearly says that this benefit remains for savings and capital gains income.

jonesMUFCforever

As this is not due to start until April 2008 and has not yet been ratified by parliament there is plenty of time for bits and pieces to be added or removed.

bristolleedsfan

StevieJ wrote: »

I picked this up on the Citywire blog, is this true?



In Brown’s speech yesterday the 10% band was removed for all eared income. I checked the red book and sure enough point A.10 clearly says that this benefit remains for savings and capital gains income.

savings income isnt taxed at 10% as far as im aware its either 0% as non taxpayer or qualifying isa or 20% savings tax thats how it is now before browns budget tinkering ,,brown wanted to simplify the tax system was brown that introduced the 10% starting rate of tax around 9 years ago :rotfl:

tyllwyd

I think savings income is taxed at 20%, but if you are a 10% tax payer it is down to you to claim some of it back.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnSavingsAndInvestments/DG_4015739
I guess when the 10% band goes, the ability to claim it back goes?

StevieJ

bristolleedsfan wrote: »

savings income isnt taxed at 10% as far as im aware its either 0% as non taxpayer or qualifying isa or 20% savings tax thats how it is now before browns budget tinkering ,,brown wanted to simplify the tax system was brown that introduced the 10% starting rate of tax around 9 years ago :rotfl:

I think this is because you always offset earned income against the 10% tax band because it is charged at 22% and savings are only 20%.