A CASH ISA IS A TYPE OF SAVINGS ACCOUNT WHERE YOU CAN SAVE UP TO £ 20,000 EACH TAX YEAR AND ANY SAVINGS INTEREST YOU’RE
Rachel Reeves Has Confirmed She won’t Reduse the £ 20,000 Annual Tax-free Isa Limit, Following Months of Speculation. Howver, Experts Including Martin Lewis Have Warned That Changes to Cash Isas Specific Could Still Be Coming.
There had been rumours that the chancellor was consider cutting the cash isa limit to as little as £ 4,000. A CASH ISA IS A TYPE OF SAVINGS ACCOUNT WHERE YOU CAN SAVE UP TO £ 20,000 EACH TAX YEAR AND ANY SAVINGS INTEREST YOU WILL BE TAX-FREE.
Earlier This Year, Economic Secretary to the Treasury, Emma Reynolds, Urged for More Money to be invested in the Stock Market Instead. There are oter types of isas known as stocks and shares isas where your Money is invested in Shares in individual companies.
Instead of Being Given a set of interest, the rate of your retourn in a stocks and shares isa is basic on the performance of the firms invested in.
The Treasury Confirmed in the March Budget that the Government is “Looking at Options for Reforms” for the Cash Isa. Now, Speaking to the BBC on Monday, MS Reeves Said: “I’m Not Going to Reduce the Limit of What People Put into an Isa, but i want People to get back on their savings, whether in a retirement day-to-day savings.
“And at the moment, a lot of Money is put into cash or bonds when it can be invested in equities, in stock markets, and Earn a better return for people.
Martin Lewis Advised to Take this Statement With A Pinch of Salt and Said Changes to How Much You CAN HOLD IN CASH IN ISAS COULD STILL BE ON THE CARDS.
He Speculated on X: “Reading BetWene the Lines Its SEEMS THAT, SHE IS STILL CONSIDING ANNOUNCHING A CUT SPECIFICALLY TO THE CASS ISSA ALLOWANCE FOR NEW MONEY (RUMOURED FROM CURRENT £ 20K DOWN TO AS LOW) AS part of Autumn Statement.”
Savers have be more at the risk of paying to pay interest they made on their savings after rates improked over the past couple of years. But not everye has to pay tax on savings interest.
If you’re a basic-rate taxpaer, you can Earn £ 1,000 every tax year in savings interest before you need to pay tax. The Threshold is £ 500 for Higher-Rate Taxpayers, while Additional Rate Taxpayers don’t get an allowance at all. You would start to pay interest on the Money Earned From Your Savings Once You Earn Above these Thresholds.
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