Julian Smith, Member of Parliament for Skipton and Ripon, is welcoming dramatic new help for savers announced in the Budget.
It will help those who want to save for a home, their family or retirement by:
• Merging the cash ISA and stocks & shares ISA into a single New ISA with an annual limit of £15,000 – this will make saving simpler and more flexible. Almost half a million ISA holders in Yorkshire could benefit from the New ISA.
• Abolishing the 10p starting rate of tax for savings income – the 10p band will become a zero rate band and will be extended to the first £5,000 of savings income. This will benefit 1.5 million low income savers.
• Creating a new pensioner bond that will offer a return that is better than anything pensioners can get now – helping pensioners who have worked hard and saved.
• The biggest reform of pensions taxation in a century. This will mean:
o No one will have to buy an annuity if they don’t want to.
o There will be no punitive 55 per cent tax rate if you try and take more than your tax free lump sum.
o Everyone who retires on these schemes will now be offered free, impartial, face-to-face advice.
The MP commented:
“Savers have had a really tough time in recent years so it is right that we now put in place measures to help those who have, or want to, put money away for the future. These radical changes support those who want to save for a home, save for their family or save for retirement boosting economic security for everyone who works hard and saves hard.”