Bob Walter MP welcomes a new tax cut for hardworking people and measures to back savers in North Dorset

ROBERT WALTER MP has welcomed dramatic new help announced in the Budget for savers and a new tax cut to make people in North Dorset more financially secure.

The Budget will help those people who want to save for a home, save for their family, or save for their retirement by:

  • Merging the cash ISA and stocks & shares ISA into a single New ISA with an annual limit of £15,000 – this will make saving simpler and more flexible.
  • Abolishing the 10p starting rate of tax for savings income – the 10p band will become a zero rate band and will be extended to the first £5,000 of savings income. This will benefit 1.5 million low income savers.
  • Creating a new pensioner bond that will offer a return that is better than anything pensioners can get now – helping pensioners who have worked hard and saved.
  • The biggest reform of pension taxation in a century. This will mean:
    • No one will have to buy an annuity if they don’t want to.
    • There will be no punitive 55 per cent tax rate if you try and take more than your tax free lump sum.
    • Everyone who retires on these schemes will now be offered free, impartial, face-to-face advice.

In addition, from April 2015 the personal allowance will rise to £10,500, cutting taxes for 25 million people and taking another 290,000 people out of paying income tax altogether.

Rises in the personal allowance since 2010 mean that by April next year a typical basic rate taxpayer will be paying £805 less in tax than they would have been, with 3.2 million people taken out of income tax altogether.

The budget measures do not result in any additional higher rate taxpayers. The full benefit will be passed on to higher rate taxpayers – everyone earning up to £100,000 will gain equally and will pay less tax because of this tax cut.

Bob Walter MP said:

“It’s undeniable that savers have had a hard time in recent years and I think it’s time Britain helped them out. That’s why, whether you want to save for a home, save for your family, or save for your retirement, this is a Budget for you.

“Today’s announcement of a rise in the personal allowance is also excellent news for hardworking people in North Dorset. It will mean lower taxes for an estimated 38,500* people in my constituency, with some 500* people taken out of income tax altogether in April 2015. That means people keeping more of the money they’ve worked hard to earn, giving them and their families more financial security for the future.”