Savings account for a non-tax payer.

margaret_3

I wonder if anyone can tell me how much someone can have in his deposit account before tax becomes payable.
Many thanks.
Margaret

grumbler

margaret wrote:

I wonder if anyone can tell me how much someone can have in his deposit account before tax becomes payable

The question should be not how much to have but how much interest to earn.
For 2005/06 you do not pay tax on interest below £4895. For 5% account this gives £4895/0.05=£97900 :eek: deposit.

P.S. Do not forget that banks deduct 20% tax unles you fill in some form.
P.P.S. £4895 allowance includes all your other incomes, not only interest.

margaret_3

Thanks a lot.
Margaret