Budget 2015: George Osborne hails 'savings revolution' with radical ISA plans
RADICAL plans to reward savers - including increasing the amount people can invest in ISAs - were unveiled by the Chancellor today.
George Osborne said measures in today's Budget would abolish tax on savings for 17 million people
From this autumn, savers will be able to take money out of their account and put it back at the end of the year without losing any of their tax-free entitlement.
In a Budget statement that focused heavily on protecting savers, George Osborne promised a “radically more flexible ISA”.
The current limit on the amount of money that can be put into the savings account will be increased to £15,240, the Chancellor confirmed.
People have already paid tax once on their money when they earn it. They shouldn't have to pay tax a second time when they save it
A new 'Help-to-Buy' ISA aimed at first-time house buyers was also announced, which would allow the Government to top-up by £50 for every £200 saved for a deposit.
In a raft of new savings measures, Mr Osborne revealed that under a new personal savings allowance, the first £1,000 earned in interest would be completely tax-free.
He claimed the move would abolish tax on savings for 17 million people.
"People have already paid tax once on their money when they earn it. They shouldn't have to pay tax a second time when they save it," he said.
"At a stroke we create tax-free banking for almost the entire population."
Together with the plans to allow pensioners to cash in their annuities, he said the Government was conducting a "savings revolution".
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From this autumn, savers will be able to take money out of their account and put it back at the end of the year without losing any of their tax-free entitlement.
In a Budget statement that focused heavily on protecting savers, George Osborne promised a “radically more flexible ISA”.
The current limit on the amount of money that can be put into the savings account will be increased to £15,240, the Chancellor confirmed.
People have already paid tax once on their money when they earn it. They shouldn't have to pay tax a second time when they save it
A new 'Help-to-Buy' ISA aimed at first-time house buyers was also announced, which would allow the Government to top-up by £50 for every £200 saved for a deposit.
In a raft of new savings measures, Mr Osborne revealed that under a new personal savings allowance, the first £1,000 earned in interest would be completely tax-free.
He claimed the move would abolish tax on savings for 17 million people.
"People have already paid tax once on their money when they earn it. They shouldn't have to pay tax a second time when they save it," he said.
"At a stroke we create tax-free banking for almost the entire population."
Together with the plans to allow pensioners to cash in their annuities, he said the Government was conducting a "savings revolution".