10% savings band

Perelandra

When I watched the budget, my understanding was exactly the same as Coastline's above.

atypical

What he said was:
"I am aware that the concept of a 10p tax rate has caused problems for Labour Members ... To put them out of their misery, we are going to turn their 10p band into a 0p band, so they do not have to worry about it any more."

That makes it clear I think that he's not referring to the 10% savings band. BBC News reports the same in the last paragraph here.

arcadia00

BBC
"There is one extra bonus for a small group of people, mainly pensioners, who pay 10% on savings if they have no other income. This is charged on a narrow band of savings above the personal allowance, so they will pay less tax because the personal allowance has gone up."


In what way is it a new "extra bonus" for these people relative to all other people? They start paying the same 10% a bit higher up just like all others start paying the 20% the same bit higher up. I don't see any new "extra bonus for a small group of people". And if they don't mean a new extra bonus why comment on it at all, nothing changed.

jimjames

arcadia00 wrote: »

Having viewed the video again, I just think his mention of the 10% rate was as a dig at Labour who got rid of it. Nothing to do with the current 10% savings rate.

That was exactly my thought that I based my post on.

arcadia00

jimjames wrote: »

That was exactly my thought that I based my post on.

I still think it is ambiguous though and it could still mean he keeps the allowance but has a 0% rate on it, giving an effective personal allowance of £12800 ish. The group size will be tiny so presumbably it wont cost much.