Tories unveil savings tax consultation

Details of the sixth consultation paper, entitled Tax on Savings: A new direction, suggests, alongside previous proposals for the introduction of the Lifetime Savings Account (LiSA), confidence in the savings culture could be encouraged by raising the tax-free annual Isa limit to £9,000 - at a cost of £100m to the Treasury – and by shifting the gross deposit limit to net so anyone who withdraws £1,000 in a year so they can still contribute £3,000 from an overall deposit of £4,000. Letwin also suggests a cut in the income tax on savings income – on amounts between £6,765 and £36,145 - fro...