This is Money Podcast Do you need to worry about tax on your savings and investments?
Dec 2, 2022
51:27
Many people have not had to worry about paying tax on their savings and investments for some time.
The advent of the £1,000 personal savings allowance combined with savings rates near record lows meant basic rate taxpayers would need big cash pots to incur 20 per cent tax on their interest.
Meanwhile, even higher rate taxpayers with their lower £500 personal savings allowance needed reasonably large cash pots to pay 40 per cent tax on their interest.
Many investors also didn't need to worry too much about capital gains tax, with a tax-free allowance of £12,300 per year.
But things have changed: rising savings rates and fiscal drag pulling more people into the higher rate bracket mean that many more savers will now have to pay tax on interest - while Jeremy Hunt's tax raid on investors will see the capital gains tax allowance slashed to £6,000 and then £3,000.
So do you now need to worry about tax on your savings and investments and what can you do? Georgie Frost, Tanya Jefferies and Simon Lambert dive into the world of savings and capital gains tax on this podcast.
Unsurprisingly, the benefits of an Isa feature strongly, as do some other tips and a discussion of what this means for buy-to-let landlords and second home owners.
Plus, there is a special guest podcast appearance from our pensions columnist Steve Webb to talk through a major victory for someone told by the DWP they were owed much less from a delayed state pension than they actually were - and an update on pension credit.
And finally, has the used car price boom come to an end? Simon talks us through why some second hand cars - including popular electric ones - have seen their prices drop.
The advent of the £1,000 personal savings allowance combined with savings rates near record lows meant basic rate taxpayers would need big cash pots to incur 20 per cent tax on their interest.
Meanwhile, even higher rate taxpayers with their lower £500 personal savings allowance needed reasonably large cash pots to pay 40 per cent tax on their interest.
Many investors also didn't need to worry too much about capital gains tax, with a tax-free allowance of £12,300 per year.
But things have changed: rising savings rates and fiscal drag pulling more people into the higher rate bracket mean that many more savers will now have to pay tax on interest - while Jeremy Hunt's tax raid on investors will see the capital gains tax allowance slashed to £6,000 and then £3,000.
So do you now need to worry about tax on your savings and investments and what can you do? Georgie Frost, Tanya Jefferies and Simon Lambert dive into the world of savings and capital gains tax on this podcast.
Unsurprisingly, the benefits of an Isa feature strongly, as do some other tips and a discussion of what this means for buy-to-let landlords and second home owners.
Plus, there is a special guest podcast appearance from our pensions columnist Steve Webb to talk through a major victory for someone told by the DWP they were owed much less from a delayed state pension than they actually were - and an update on pension credit.
And finally, has the used car price boom come to an end? Simon talks us through why some second hand cars - including popular electric ones - have seen their prices drop.