Anonymous 1 needed this 'Off the Record'
Savings and investments are taxed on income. If shares fall in value, dividends are still taxed. If my income remains the same year on year, it is still taxed. If you invest and take a risk outwith inflation and make a capital loss then you can generally offset this loss against other gains.
If your income falls so low as to be below the zero band, you are not taxed.
To say that there is some faulty thinking going on in this thread would be a polite way of saying it is total nonsense.
National Savings have relaunched an index linked savings cert. Look it up please.
I have looked at these forums for the first time today and it is no wonder the country's finances are in such a shocking state.