SAVERS will get some relief through a 1 per cent reduction in Deposit Interest Retention Tax (DIRT) from April 6th next.
This fall is in line with a 1 per cent drop in the standard rate of income tax and should encourage more people to channel funds into savings accounts.
The 15 per cent DIRT rate on Special Savings accounts the 10 per cent rates on Investment Accounts and Special Portfolio Investment accounts is to be maintained however.
The special tax rate for investment in life assurance companies, Unit Trusts and UCITS (Undertaking for Collective Investment in Transferable Securities) type products has also been reduced.
This rate falls from 27 per cent to 26 per cent also from April 6th next, again moving in line with a 1 per cent fall in the standard rate of income take.