Savers must protect themselves against tax rate rises - L&G

He says a growing elderly population adding pressure to public spending could lead to tax raterises. These have been kept low for the past 19 years since former chancellor Nigel Lawson slashed tax rates for top rate payers from 60% to 40% in the 1988 budget. However, Boulding urged investors not to become complacent and advised them to protect themselves. He recommends consumers pay income tax on savings today and invest the remainder in an insurance bond. This would ensure they would only pay tax on the bond’s growth and not the capital invested. “If you invest through a bond, you pay ...