Property News · March 12, 2016

Personal savings allowance changes: should I still get a cash Isa?


The new allowance will let most people earn up to £1,000 a year in interest tax-free. For many, the cash Isa could become pointlessNext month will see a revolution in how your bank and building society accounts are taxed. Until now, your account provider has automatically whipped 20% from the interest earned on savings accounts and passed the money to the taxman. But from 6 April this decades-old system will be swept away, and all the interest earned on your savings will be paid out in full, without any tax deducted.What’s more, the government is introducing a personal savings allowance of up to £1,000 a year in interest, which means the vast majority of people won’t have to pay tax on their savings income. In the past, the cash Isa sheltered your savings from tax – but now people are asking if there is any point in having an Isa any more. Continue reading…

Source : theguardian.com
Read more…Personal savings allowance changes: should I still get a cash Isa?

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