Savings and Investments thread

golfaddick

bobmunro said:

cantersaddick said:

bobmunro said:

golfaddick said:

laurathered said:

Its funny because I watched the Budget & heard him say an increase in tax to savings interest but don't think I heard an actual % amount.

So you are paying more tax on your savings than you are on your income. 

The Chancellor giveth & then takes it away. 

In Tax Year 25/26 the rates of income tax on interest were 20%, 40% and 45%

In Tax Year 26/27 the rates of income tax on interest were 22%, 42% and 47%

In Tax Year 27/28 the rates of income tax on interest will be 24%, 44% and 49%

So over two tax years basic rate tax payers see a 20% increase in the tax they pay on interest - 40% tax payers see a 10% increase in the tax they pay on interest, and 45% tax payers see a 8.9% increase in the tax they pay on interest.

Not what you would call progressive tax policy, is it?

Yeah it's ridiculous. If you look at who it's hitting as well, it's middle to high income earners with savings outside of ISA's. The same people who have been hit by various measures over the last decade. Instead of targeting the ultra rich or large corporations. 

For all the talk of ending 40 years of Neoliberalism it was disappointingly just more of the same. Lots of tinkering, little give aways offset by little takes. Few good measures in the removal of standing charges and the bank levy. But that's about it. No structural changes to the tax system. Shame really. Missed opportunity but not surprised.

Is it bollocks. It is disproportionately hitting 20% rate pensioners who may have a small private pension and a relatively small amount of savings, or low wage earners trying to put a bit aside but may very well need to access the funds (so ISAs don't really work). That's not middle to high income earners.

Of course (Cash) ISA's work. There are hundreds of different products that are flexible, although wont be paying 4.5%- 5% I grant you. There are also lots you can have access to 3 times per year. I have one with Moneybox paying 4.4%.

And basic rate taxpayers can get £1,000 interest before paying tax. At 4% that's £25k on deposit. And then there are Premium Bonds - max £50k.

So, a basic rate taxpayer can have almost £100k on deposit without paying tax. 

golfaddick

Came on to say I thought it was a very poor Budget. As pp said, it was just tinkering around the edges with no meaningful purpose. 

Not getting political but I wonder what Labour voters think. There was all this hullabaloo with Andy Burnham becoming Labour leader & PM, spouting off all sorts about fresh starts & turning back the clock. And what do we get......£100 giveaways to some people & your Gas Standing Charge cancelled. 

Is that all there is  ????

Does make me think there will be a GE next year - around May I reckon. 

se9addick

Felt like a treading water, don’t scare the horses, budget.