British people why don't you just put ALL your savings into a High Interest Current Account ?
In Great Britain / United Kingdom , If YOU are stupid enough to Have a Private Pension or a Savings account with a Bank or Building Society and you try to draw money out to put into a Current Account or to get the cash out , THE HM REVENUE & CUSTOMS ""WILL"" tax you when you try to draw it out , Don't be fooled by The Government's Pension Advice Service , it is another way for The HMRC to know how much money YOU HAVE so they can charge YOU a TAX when or if you try to draw it out ! I had a considerable amount in a Private Pension Plan where NO Employer had contributed to that Savings Pot but when I tried to draw it out I was told I would lose half of it in TAX !
- STEPHENLv 76 months ago
Because "high interest current accounts" are not high interest. You'll be lucky to get 2% these days.
You clearly don't have a clue what you're talking about and have been listening to people who are equally ignorant.
" when I tried to draw it out I was told I would lose half of it in TAX !"
This is total BS.Source(s): 20+ years in financial services.
- curtisports2Lv 76 months ago
Guess what? If you contributed to a pension plan from your pay, it is very likely that you were not taxed on that money. And everything you earned on that money in that plan was not taxed. This allowed you to grow a much bigger pot of money than if you had saved your after-tax money and bought and sold various investments that you would have paid tax on the profits each time. That is why you pay tax when you draw it out.