tax exempt savings?

money_tree

I am currently without paid employment,& am living on my savings (around 250k).Can i claim tax exemption on my savings,as i am not in paid employment?
regards mt

jem16

Your savings are presumably earning interest. At 5% interest on £250k you would have £12500. This is more than your personal allowance so no you can't claim exemption.

Taxable income is earned income, interest from savings, dividend payments etc.

RayWolfe

You can claim back the value of your personal allowance, but the rest is taxable at 10% then 20%.

missile

You could split your savings, so that the anticipated return on one of your accounts falls bellow your personal allowance threshold including any other income you may have. Then complete an R85 for that account ONLY.

Do not make a false declaration, you will get caught and there are penalties for tax evasion.

PS: I note there are quite a few of these first post wonders with no follow up reply. Is it our moderators trying to encourage discussion?

money_tree

Thanks mr Missile,i think i am now coming closer to a solution.I suppose if i were to invest a part with the advice of an ifa to make it 'disappear',then this may be an answer.
regards mt

CLAPTON

money_tree wrote: »

Thanks mr Missile,i think i am now coming closer to a solution.I suppose if i were to invest a part with the advice of an ifa to make it 'disappear',then this may be an answer.
regards mt

also illegal and unlikely to be successful... i wouldn't suggest follow that route. essentially you are stuck with paying tax.

jem16

CLAPTON wrote: »

also illegal and unlikely to be successful... i wouldn't suggest follow that route. essentially you are stuck with paying tax.

Not really.

The IFA could be suggesting investing in investment bonds where an income of 5% can be taken tax-free legally.

Steve_xx

jem16 wrote: »

Your savings are presumably earning interest. At 5% interest on £250k you would have £12500. This is more than your personal allowance so no you can't claim exemption.

Taxable income is earned income, interest from savings, dividend payments etc.

The poster may not be able to claim exemption from paying tax on the savings, but would be able to make a claim for repayment of the excess tax actually deducted by completing a Claim For Repayment (R40) form.

jem16

Steve_xx wrote: »

The poster may not be able to claim exemption from paying tax on the savings, but would be able to make a claim for repayment of the excess tax actually deducted by completing a Claim For Repayment (R40) form.

I realise that although I was purely answering the exemption question.

Claiming back the excess was mentioned in Post 3.

Steve_xx

jem16 wrote: »

I realise that although I was purely answering the exemption question.

Claiming back the excess was mentioned in Post 3.

Well why not advise the poster clearly and concisely in the first instant?

jem16

Steve_xx wrote: »

Well why not advise the poster clearly and concisely in the first instant?

Probably because I never thought about it in the first instance.

I shall try to be more clear and concise in the future.