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Savings Interest

Sorry if this is a Homer moment but ... I currently pay 20% interest on my savings. Is this reducing to 18% for 2008-09. That is, is interest gained from savings regarded as subject to CGT ( more accurately is it termed CGT ) ?
Again, apologies.

Comments

  • Mikeyorks
    Mikeyorks Posts: 10,379 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    No - interest on savings / earnings is Income Tax (continues at 20%). Capital Gains Tax applies to .....er ... capital gains (gains on Shares / 2nd properties etc .......and will be, in general, be 18%)
    If you want to test the depth of the water .........don't use both feet !
  • JBmoney
    JBmoney Posts: 31 Forumite
    Ta very much for that. Does anyone know why it is 20%. Why is there a stand-off between savers and borrowers ( in terms of interest rate ) ? Why no consideration to reducing savings tax rate to encourage a "more liquid" economy ? Surely the whole Nor. Rock debacle has highlighted the necessity for liquid resource ?
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