Quick Question rearding pensioners savings

sixtytwo

Can anyone tell me if husband and wife ( wife didn,t pay full stamp)on the basic state pension should pay tax on their savings of 60.000.

EdInvestor

It depends on how much the pensions are vis a vis their personal allowances.|The wife is likely to have more tax free 'space' available as her pension is usually only 60% of the man's, so it often makes sense to put more of the money in her name. This year's personal allowance for people over 65 is just under 9500, IIRC. You only pay tax on the interest on the savings, so it's unlikely to be much at present.

sixtytwo

Thanks for your advice.

Pollycat

Put your figures into this form:
http://www.thetipton.co.uk/home/savings/downloads/form-r85-helpsheet.pdf

It's very simple and will tell you at the end whether you should be paying tax or not.

If neither of you are in receipt of any other pensions, I'd say you wouldn't be liable to pay tax (based on my parents' situation).

You would need to complete the actual R85 form and send it to your bank/building society to get your interest paid grossly.