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Inheritance tax.

pete01 said:
If you're a 20% tax payer with 20k or less savings you wont pay tax on interest.

If you're a 40% tax payer with 10k or less savings you wont pay tax on interest.

If you earn over 125k you'll pay tax on any saving interest.

Roughly....assuming a 5% saving account.

Martin Lewis told me :)

Click to expand...
Premium Bond prizes are exempt from income tax, and are calculated to match (but not to beat) a reasonable interest rate. They are good value for higher rate taxpayers. They are handy for a "just in case" cash buffer and there is no delay or penalty on withdrawals. Unlike some savings accounts they do not reduce the rate after they've got your money and hope you won't notice.

ISAs are also tax free.

Edit
Cash savings are not a good long term investment, because they have no chance of growth, and are eroded by inflation.
 
Last edited:
I think it should be tweaked a bit.

Everyone should get a £500k allowance. Nothing extra for passing on a house. That was just politics by George Osborne. So, a couple still get a million.

Then the next £500k should be taxed at 25%. Anything above that at 40%.
 
MNW67 said:
I think it should be tweaked a bit.

Everyone should get a £500k allowance. Nothing extra for passing on a house. That was just politics by George Osborne. So, a couple still get a million.

Then the next £500k should be taxed at 25%. Anything above that at 40%.
Click to expand...
with no ability to pass to spouse?

thats a bit tricky.
 
motorbiking said:
with no ability to pass to spouse?
Click to expand...

No, that's not what I meant.

Leave the system mainly as it is.

But get rid of the silly £175k bit for passing down a house.

Instead increase everyone's allowance to £500k.

Then 25% for the first £500k after the allowance has been used up and 40% for everything after that.
 
gas112 said:
There was an article possibly martinlewis saying instead of paying more into mortgage pay it into a pension. Figures were quite impressive
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It's back to the thing of looking at the longer term position. However, I'm making overpayments with a view to clearing the mortgage when I'm 60. Maybe just a psychological thing, however I'll be happier knowing 'that's the mortgage paid' so at least I know I have a roof over my head that's bought and paid for. In theory, I can then get by thereafter quite frugally if need be.
 
MNW67 said:
No, that's not what I meant.

Leave the system mainly as it is.

But get rid of the silly £175k bit for passing down a house.

Instead increase everyone's allowance to £500k.

Then 25% for the first £500k after the allowance has been used up and 40% for everything after that.
Click to expand...
Increase it to a million I say.
 
Reform want to increase it to £2M.

But I also like the tapered tax option. Less incentive for people to find dodgy ways to hide it, which often leave people getting state care when they can afford to chip in,

Personally do not see why being married should have anything to do with tax. Person A should be able to pass something to a Person B without the need for a marriage.
 
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