Overview
- Lewis told a BBC podcast listener that savings principal is not taxed, as only the interest earned can be liable for tax.
- He said the same approach applies to investments, with capital gains tax on profits and possible income tax on dividends rather than on the original sum.
- He advised using regulated savings accounts covered by the Financial Services Compensation Scheme, which now protects up to £120,000 per person per provider.
- He contrasted that with typical home insurance policies that cover about £1,000 of cash, warning that holding money at home increases the risk of uninsured loss.
- He described any move to tax people’s lump‑sum savings as virtually unthinkable and urged listeners to choose savings accounts over hoarding cash.