Savings Starter Rate and Personal Savings Allowance

Monobloc

Thinking of moving our savings into Isas in case the above allowances are targeted in the coming budget.As they stand,they afford myself and in particular my wife’s savings interest,quite a bit of protection from being taxed.
Am I being over cautious.TIA.

eskbanker

You can only move £20K (each) into ISAs in any tax year, and if you're getting "quite a bit of protection" from those allowances, that would imply much higher balances?

No harm in doing what you suggest if you're talking about easy access savings and flexible ISAs, etc, but very unlikely to be necessary, especially when any such changes are unlikely to apply immediately (and there's been plenty of fanfare about no changes to income tax)....

MikeJXE

I started moving to my first ISA 2 months ago when I realised my savings interest would exceed my interest free amount next year 

jimjames

Always worth using tax free allowances like ISAs but it's a bit late if you have substantial balances although as a couple you can add £40k per year at present. I'd expect ISA allowances to be cut but that's just my personal view rather than insight from the government. If your wife has no other income then the standard personal allowances apply anyway.

Monobloc

My wife and I are both pensioners with small pension incomes.Our life savings interest is safe just now as long as Reeves doesn’t go after the SSR and PSA.Our savings in N/wide and NS&I bonds are paying on maturity,5.5% and 5.15%,respectively,in Dec. and Nov. 2025.
The bulk of the savings are in the NS&I bond,which is just inside the “cooling off period”,should I decide to cancel and transfer out to an ISA.
On reflection though,the best rates I see out there from the “High Street” are around 4% ish,and in the worse case scenario,should I have to pay tax on the whole of the interest due to the SSR and PSA being either abolished or severely reduced,the bottom line percentage return is more or less the same.
So,I think I’ll just sit tight with my fingers crossed.Lol.
Thanks to all who replied.