tax exemption

cagneyfan

Can anyone advise please. I'm unemployed due to ill health. I receive a War Pension of £383.00 a month and Incapacity benefit of £408.00 a month. I have £50,000 in savings and investments. Am I entitled to fill in a tax exemption form(R85?) or do I have too much savings and/or too much annual benefit to qualify. I simply cannot understand any type of financial jargon and would appreciate any response please

jem16

Do you pay any tax?

I believe a War pension is tax free.

Incapacity benefit is tax-free if received before 1995 but taxable otherwise. If taxable that would come to £4896.

However you also have to add gross income from savings and dividends so that might take you into having to pay tax.