Call to scrap 10% rate on savings income

The independent body, set up by the coalition, looked at the elements of tax that cause the most complications for pensioners, including tax on savings and the married couple's allowance. It said the 10% tax rate on some savings income should be scrapped with all such income instead taxed at 20%. The money saved could be used to increase ISA limits, it said. The OTS also recommended simplifying the married couple's allowance to remove the current income abatement system and replace it with a flat-rate payment for those still eligible. Finally, it suggested the blind person's allowa...