Stuart Price, Partner and actuary at Quantum, gives his thoughts on the options and possible repercussions of the impending Government tax reform…
Stuart said: “Currently, the complex system of giving tax relief at people’s marginal income rate costs the Treasury around £38bn a year.
“It is being suggested that Chancellor Philip Hammond may opt to update this by offering either a single flat rate of 20% for all savers which would save the Treasury around £13bn a year, or a single flat rate set at 30% which would be broadly cost neutral.
“While there will certainly be losers in this single flat rate tax relief system, namely the higher tax rate-payers not currently impacted by the Annual Allowance, it is my belief that simplifying the system can only be a positive move.
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