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  • FIRST POST
    • oldwiring
    • By oldwiring 12th Jun 17, 10:29 AM
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    oldwiring
    Just received consolidated tax certificates
    • #1
    • 12th Jun 17, 10:29 AM
    Just received consolidated tax certificates 12th Jun 17 at 10:29 AM
    We have received joint Consolidated Tax Certificates from our investment manager. This shows
    1. Interest taxed at source
    2. Other income
    Combined they are below the £1000 allowance for each of us.

    Also received was untaxed Foreign Dividend just short of £100.

    I am a standard rate payer, and my wife does not pay tax.
    I should like to know how under the new regulations we may claim repayment of 1 &2.

    Do we need take any action at all about the foreign dividend income?
    Any person with knowledge here, who can advise? Please!
Page 1
    • eskbanker
    • By eskbanker 12th Jun 17, 11:39 AM
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    eskbanker
    • #2
    • 12th Jun 17, 11:39 AM
    • #2
    • 12th Jun 17, 11:39 AM
    According to https://www.gov.uk/government/publications/personal-savings-allowance-factsheet/personal-savings-allowance the PSA does include
    interest distributions (but not dividend distributions) from authorised unit trusts, open-ended investment companies and investment trusts
    so if item 1 falls into this category then you should both be able to reclaim any tax paid, assuming of course that you don't have other savings whose interest would take you over the allowance (surely you don't have all of your money in investments and none in savings?!).

    For any tax paid on 'other income', I don't see a basis for you reclaiming (which is likely to be why they've shown the two items separately), but if your wife is below the income tax threshold then she may be able to reclaim half of the tax paid, if the assets are held jointly. Is it worth putting them all into her name?

    As you have a dividend allowance of £5K as a separate entity from the £1K personal savings allowance then no action is needed for the untaxed dividend payment.
    • oldwiring
    • By oldwiring 12th Jun 17, 1:46 PM
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    oldwiring
    • #3
    • 12th Jun 17, 1:46 PM
    • #3
    • 12th Jun 17, 1:46 PM
    Our situation is that we each have ISAs, and a joint investment account for items outside the ISAs. Our 2017/18 ISAs will be fed when opprtune from the joint investment account. A further sum is held in our bank account, while we were rejigging our finances. Now this is complete, most will be placed in interest bearing savings.

    Is your comment based about other income based on the link, which I have not had time to read? form still R86?
    • eskbanker
    • By eskbanker 12th Jun 17, 3:10 PM
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    eskbanker
    • #4
    • 12th Jun 17, 3:10 PM
    • #4
    • 12th Jun 17, 3:10 PM
    Is your comment based about other income based on the link, which I have not had time to read?
    Originally posted by oldwiring
    Not directly - it's based on the fact that the PSA is specifically related to interest and hence all the various threads and posts on here about how it doesn't relate to the non-interest reward payments made by certain banks such as Halifax.

    Difficult to know without more detail exactly what the 'other income' is but if it's not interest then it won't qualify for tax exemption within the PSA, and hence my suggestion that the statement's differentiation between interest and other income could be specifically because of such tax considerations.
    • oldwiring
    • By oldwiring 12th Jun 17, 4:24 PM
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    oldwiring
    • #5
    • 12th Jun 17, 4:24 PM
    • #5
    • 12th Jun 17, 4:24 PM
    The other income rises from Property Income Distributions (PIDs) ofvarious groups such as M&G.
    • bowlhead99
    • By bowlhead99 12th Jun 17, 5:39 PM
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    bowlhead99
    • #6
    • 12th Jun 17, 5:39 PM
    • #6
    • 12th Jun 17, 5:39 PM
    Ok, well your wife - as someone whose earnings including the PIDs don't exceed her annual allowance - can reclaim the 20% tax which has been withheld on the PIDs.

    If she's not doing a tax return, she can just put it in writing to HMRC that she's overpaid that tax. She could tell them in the same letter that she's telling them she had interest withheld when her interest from all sources for the year didn't exceed her allowances /0% band. If they want her to fill out a specific form, they'll tell her.

    You - as a standard rate taxpayer - can't reclaim the 20% tax you've paid on your property income because that was the right amount of tax for you to pay on that income. As others mentioned, perhaps consider moving it into an investment account in her sole name if the tax is going to be more than insignificant going forward. Or consider prioritising it to move into the ISA ahead of things that produce dividends or interest which would be covered by your allowances.
    • oldwiring
    • By oldwiring 12th Jun 17, 6:19 PM
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    oldwiring
    • #7
    • 12th Jun 17, 6:19 PM
    • #7
    • 12th Jun 17, 6:19 PM
    I do have a tax office, that of my principal pension provider. My wife has not had sufficient income to pay tax for decades. To what office do we submit her claim?
    • eskbanker
    • By eskbanker 12th Jun 17, 6:31 PM
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    eskbanker
    • #8
    • 12th Jun 17, 6:31 PM
    • #8
    • 12th Jun 17, 6:31 PM
    https://www.gov.uk/contact-hmrc should be an adequate starting point rather than thinking in terms of specific offices....
    • Dazed and confused
    • By Dazed and confused 12th Jun 17, 8:18 PM
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    Dazed and confused
    • #9
    • 12th Jun 17, 8:18 PM
    • #9
    • 12th Jun 17, 8:18 PM
    oldwiring

    I am a standard rate payer, and my wife does not pay tax.
    I should like to know how under the new regulations we may claim repayment of 1 &2.


    If by "new regulations" you mean the personal savings allowance then it is highly likely your wife won't be able to benefit from this as she simply won't have sufficient income to make it relevant to her tax affairs.

    You may also wish to have a chat to your wife about the Marriage Allowance as it's possible an application from her for this could benefit you to the tune of £200+ per year (depending on how much basic rate tax you are actually paying). If applying for previous tax years she should take care to check she won't be worse off by applying first i.e. she may be a non taxpayer now in this tax year but could have been a taxpayer who is eligible but cannot benefit (as part of a couple) in earlier years. Irrelevant of course if you already qualify for the old Married Couples Allowance.
    • oldwiring
    • By oldwiring 13th Jun 17, 12:26 AM
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    oldwiring
    We're both 80, and she has done the done the MA thing!
    We're dealing solely with 2016/17.

    We also surrendered two single premium insurances for which we have got Chargeable Event certificates that note tax deemed paid. I think I have enough margin in the 20% band not to need declare it. can someone tell why, in the certificate, the years policy held is quoted?

    Abacus is at hand to do my calcs!
    • eskbanker
    • By eskbanker 13th Jun 17, 11:53 AM
    • 5,466 Posts
    • 5,270 Thanks
    eskbanker
    oldwiring

    I am a standard rate payer, and my wife does not pay tax.
    I should like to know how under the new regulations we may claim repayment of 1 &2.


    If by "new regulations" you mean the personal savings allowance then it is highly likely your wife won't be able to benefit from this as she simply won't have sufficient income to make it relevant to her tax affairs.
    Originally posted by Dazed and confused
    I could be wrong but don't think that OP is necessarily expecting/wanting his wife to benefit specifically from the PSA - the key message for her remains that she's paid some tax and so should be able to reclaim this if her income is below all relevant thresholds.
    • oldwiring
    • By oldwiring 13th Jun 17, 4:19 PM
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    oldwiring
    I am in course of completing R40. It's more inquisitional than I'd imagined, not having had to deal with HMRC for over fifteen years.
    • Dazed and confused
    • By Dazed and confused 13th Jun 17, 7:19 PM
    • 1,702 Posts
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    Dazed and confused
    An R40 is really just like a (self assessment) tax return, just a different format. You still have to include all of your taxable income, the same as you would on a tax return.
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