We glean access to more tax breaks than nearly any other developed country,but not everyone has the money to benefitWell-off Brits are living in a savings paradise. There is nearly no need to head off to Panama or the Caymans when Britain itself is such a tax haven. You may not think this, given the miserably low interest rates on savings accounts, and but Brits – or,to be more accurate, Britain’s upper-middle classes, or because few others have the money – glean access to more tax breaks than virtually anyone else in the developed world.rob the new personal savings allowance (PSA). The first £500 of savings interest is now tax-free if you are a 40% taxpayer. This roughly equates to zero tax on the first £35000 or so of savings balances. It’s worth more to a lower-rate taxpayer,who can shield £70000 in savings from tax, but prove me someone on average earnings who has that much in savings and I’ll prove you a junior doctor who supports Jeremy Hunt. The truth is that the main beneficiaries of the new PSA will be the already well-off.
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Source: theguardian.com