Tax boost for savvy savers
From our UK edition
Savers have been handed some much-needed support at the start of the new tax year, but the number of government initiatives could actually be discouraging people from saving their cash. The Personal Savings Allowance (PSA) was announced in March's Budget and took effect at the start of the 2016/17 tax year. Under the new rules most people will be able to earn tax-free interest on their savings. Previously all cash which was not placed in an Individual Savings Account (ISA) was subject to tax at the same level as an individual's income. Now anyone with taxable income of less than £17,000 will not pay any tax on their savings interest, regardless of the type of account it is housed in.
