How Budget 2015 affects savers

Help to buy ISAs

Help for those looking to save a deposit for a mortgage. This new offering comes with a boost from the government in the form of a tax free bonus.

The bonus will be 25% of the monthly saving, so if £200 per month is saved the bonus added will be £250.

The total bonus amount is capped at £3,000, if the full bonus is received then the total saved amount will be £15,000.

This will help people trying to get onto the property ladder, some sceptics think that the benefit may be reduced if the housing market picks up and prices rise with the knock on effect that larger deposits are required, time will tell.

Allowances for pensioners & other low income savers

With effect from 6 April 2016 a new personal savings allowance is introduced. The Chancellor stated that this will remove tax on savings income for 95% of all savers.

The allowance will be £1,000 for basic rate taxpayers and £500 for higher rate taxpayers.

This entry was posted in News. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *