The Office of Tax Simplification (OTS) recently published a detailed review into the taxation of savings income.
The OTS’s stated aim was to review the application of the tax system to savings and investment income, and highlight ways in which any ‘real complexities’ can be removed.
Within the report, nine areas for further development were outlined, including:
- reviewing the range of savings rates and allowances, and the interactions between them
- creating a ‘personal tax roadmap’ to clearly outline the government’s aims for personal taxation
- examining ways in which ISAs can be simplified.
The OTS stated that the UK tax system ‘works well for most savers’, but that misunderstandings remain.
Commenting on the review, Paul Morton, Tax Director at the OTS, said:
‘This is the first broad review of its type into the application of the tax system to savings and investment income. It seeks to identify ways to remove some of the real complexities in the system and help taxpayers understand their position.’
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.