Savers must prepare to defend themselves against tax attacks

The new pressure group Save Our Savers is welcome. For some years, the main threat to saving has been from the welfare state – both from its very existence displacing individual saving and because of the high rates of withdrawal of benefits which discourage those on median incomes and below from providing themselves with pensions. The tax system has been relatively benign as far as the saver has been concerned. Yes, there have been some “simplifications” which have withdrawn tax benefits but, at the same time, savers have benefited from some reforms. The exception to this, of course, is Gordon Brown’s removal of dividend tax credits for pension funds, charities and other non-taxpayers. That move, in one fell swoop, wiped about 10% off the value of pension fund investments.

Since that dreadful day in July 1997, however, there is relatively little else on the tax side that savers have had to complain about. However, they might wish to start refining their arguments now as there are some potential attacks on savers down the line. What might savers be worried about?
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