In a Budget with savers at its heart the Chancellor announced:
- A far-reaching and radical overhaul of pensions to include removing the restrictions which mean that most pensioners have to purchase an annuity on retirement.
- Measures to increase the simplicity, flexibility and generosity of Individual Savings Accounts.
- An increase to £5,000 in the maximum amount of an eligible individual’s savings income qualifying for the starting rate of tax on savings, which comes down from 10 per cent to nil.
- The launch of a new Pensioners Bond paying market leading rates of interest. It will be issued by National Savings and Investments and available from 1 January 2015 to everyone aged 65 and over.
This chapter details the tax changes ...