Budget 2014: Bingo time for savers!

Budget 2014: Bingo time for savers!

New announcements mean you can save three times as much cash into an ISA account without paying any tax on the interest.

Also on KPMG.com

Commenting on today’s announcement by the Chancellor of radical changes to ISAs and the introduction of a new pensioner bond, Greg Limb, tax partner at KPMG, said:

These measures announced today are obviously great news for savers who have been suffering for the last five years or more in a low interest rate environment. Individuals will now be able to save almost three times as much cash into an ISA and not pay any tax on their interest." 

“Pensioners also received a double benefit with the introduction of the pensioner bond and enhancements to the starting rate for savings income. Given the reductions in the bingo tax, this must make it a good day for pensioners!"

“However given the Chancellor’s statement that this is a Budget for ‘makers, doers and savers’, the above measures mainly reduce the tax impact on savings income rather than boost the income itself. That said, the pensioner bond, although limited in the amounts that can be invested, is likely to produce above market rates of return."

“Is the Chancellor going out of his way to help savers now because he does not see any prospect of interest rates rising any time soon? Pessimists will see this as a sign that we are stuck in a low interest rate bubble.”


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For further information please contact:

Mark Hamilton, KPMG Corporate Communications

M: 07785 337672

E: mark.hamilton@kpmg.co.uk

KPMG Press office: +44 (0)207 694 8773

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Chancellor’s Budget 2014


About KPMG

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such. 

This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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