Alex Chalk, Conservative Parliamentary Candidate for Cheltenham has welcomed dramatic new help announced in the Budget for savers.
The Budget will help those people who want to save for a home, save for their family or save for their 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. 648,000ISA holders in the South West 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:
- No one will have to buy an annuity if they don’t want to.
- There will be no punitive 55 per cent tax rate if you try and take more than your tax free lump sum.
- Everyone who retires on these schemes will now be offered free, impartial, face-to-face advice.