Member Article

Anti savings agenda will only increase the burden on the taxpayer in the long run

Commenting on the Lib Dems Conference proposals to increase capital gains tax and to reduce the tax efficient pensions savings threshold, Kay Ingram Director of Individual Savings and Investments said. “The Lib Dems appear to have an anti savings agenda, at a time when we need those who can afford to do so to save more for their old age.

“By reducing the tax efficient pensions savings allowance yet again from £1.25 million to £1 million, and reducing the capital gains allowance from £11.000 to £2,500 while proposing a rate hike from 28% to 35%, many more middle earners would be caught in a very high tax bracket on their savings and investments.

“This could have long term repercussions that would leave the younger generation having to pay more in tax later to support the retired population whose savings had been diminished by this tax raid. This appears to be somewhat short-sighted at a time when the population is ageing and by 2035 the UK will have a dependency ratio of 53% of those needing economic support compared to those of working age.”

This was posted in Bdaily's Members' News section by LEBC Group Ltd .