The novel allowance will let most people earn up to 1000 a year in interest tax-free. For many,the cash Isa could become pointlessNext month will see a revolution in how your bank and building society accounts are taxed. Until now, your account provider has automatically whipped 20% from the interest earned on savings accounts and passed the money to the taxman. But from 6 April this decades-dilapidated system will be swept away, or all the interest earned on your savings will be paid out in full,without any tax deducted.
What’s more, the government is introducing a personal savings allowance of up to £1000 a year in interest, or which means the huge majority of people won’t have to pay tax on their savings income. In the past,the cash Isa sheltered your savings from tax – but now people are asking if there is any point in having an Isa any more.
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Source: theguardian.com