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No tax on savings. Simples!

No tax on savings. Simples!

ISATax free interest

George Osborne has proposed a measure that would give most savers tax-free interest from April 2016. The idea is that for basic rate taxpayers, the first £1,000 of interest in a year would be free of tax; for higher rate taxpayers, the limit would be £500, so that individuals in each group would benefit by saving the same amount of tax (£200).  The Treasury says 95% of savers, or 17 million people, would not pay any tax on their interest. This is a good idea that could save a vast amount of form filling, tax reclaims and so forth.

The value of tax reliefs depends on your individual circumstances. Tax laws can change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.

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