Was the budget made for immigrants

[LeMaquis]

I think he's right. Immigrants clearly will benefit more than the indigenous population because they consume fewer sugary drinks, are hit harder by business rates, corporation tax and capital gains tax, and make more use of ISAs.

 

Either that or he's been on the bottle.

[Cyclone]

does anyone think that the budget was made to accomodate immigration into the uk?

ie.extra funds to help aid immigration

 

No, it's quite clearly a bung to the middle classes in an effort to get them to forget how the Tories are destroying the country.

 

---------- Post added 18-03-2016 at 08:59 ----------

 

What exactly was aimed at the middle class who pay the most taxes and are the ones generally getting shafted

 

40% tax bracket starting point moved up, corporation tax reduced.

 

Some more analysis here

 

http://www.theguardian.com/uk-news/2016/mar/16/budget-generation-y-george-osborne

[max]

What exactly was aimed at the middle class who pay the most taxes and are the ones generally getting shafted

 

£20,000 per annum tax free savings in ISAs plus £1,000 tax free interest on regular savings which needs about £65k to achieve. For a couple that amounts to £235k per annum in savings before tax is paid.

 

(2x ISA plus 2x savings accounts plus 1 joint savings account).

[sgtkate]

If it was a budget for immigrants then we would have seen epic tax cuts seeing as how immigrants provide more in tax revenue than they use in public services or benefits, so we'd have had a sudden tax boom. Never let facts get in the way of a rant though.

 

---------- Post added 18-03-2016 at 10:45 ----------

 

I think he's right. Immigrants clearly will benefit more than the indigenous population because they consume fewer sugary drinks, are hit harder by business rates, corporation tax and capital gains tax, and make more use of ISAs.

 

Either that or he's been on the bottle.

 

Perfect.

[Cyclone]

£20,000 per annum tax free savings in ISAs plus £1,000 tax free interest on regular savings which needs about £65k to achieve. For a couple that amounts to £235k per annum in savings before tax is paid.

 

(2x ISA plus 2x savings accounts plus 1 joint savings account).

 

Can you have a joint savings account in addition to personal ones that will still benefit from being tax free?

The £1000 tax free 'interest' is only available to the under 40 right, and is in fact another form of ISA, except that you won't be able to withdrawn it without penalty unless you are buying a 1st house and/or have reached retirement age?

And apart from the £1000 bonus payment, does it actually earn any interest?

I've yet to work out if these accounts are actually a good deal, the return will diminish each year unless there is also a base interest rate, for example.

Year 1 - £4k + 1k bonus = 25% effective interest rate.

Year 2 - £8k + 1k bonus = 12.5% effective interest rate.

Year 3 - 12k + 1k bonus = 8.33% effective interest rate.

 

By the time you're on year 10 the effective rate of return from the bonus will only be 2.5%

If you start at age 39 and don't withdrawn until 65 then the effective rate in the last year will be <1%...

 

If there's a base interest rate as well then the above criticism doesn't really apply, although the bonus gets less important the more you have in the account.

[max]

It's more fully explained here: Personal Savings Allowance

 

I can't find mention of joint accounts so you can "only" save £175k between you.

 

The bonus you mention and the under 40 rule relate to first time buyer ISAs which are not included in my OP.

[Cyclone]

It's more fully explained here: Personal Savings Allowance

 

I can't find mention of joint accounts so you can "only" save £175k between you.

 

The bonus you mention and the under 40 rule relate to first time buyer ISAs which are not included in my OP.

 

Oh okay, I thought you'd referred to them, my bad.

 

You were referring to the 1st £1000 of interest now being untaxed?

 

Edit - It's not the equivalent of 65k/year though, it's the equivalent of 65k in an account every year, if you (somehow) save 65k 2 years in a row, you will pay £400 tax on the total interest (£2000 gross) in the 2nd year.

 

So on a per annum basis for a couple it's 40k in ISAs and the 1st 65k each saved tax free.

Edited March 18, 2016 by Cyclone