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STUDENT LOAN, what are classed as tax free savings?
anothermam2
Posts: 19 Forumite
To apply for a student loan you must declare parents interest on savings.
The Student finance England form states
You must include interest you receive on bank, buildingsociety and other savings accounts unless it is specificallynon-taxable, for example, a non-taxable Individual SavingsAccount (ISA) etc.
However
Are non-taxed interest on savings of a non tax paying parent included in this scenario of specificallynon-taxable?
ie, if you have ordinary savings in an ordinary account that you do not pay tax on, due to being a non tax payer (ie do not work so do not earn)
I have not seen any advice anywhere that specifically explains this situation.
Any advice would be gratefully received, thanks.
The Student finance England form states
You must include interest you receive on bank, buildingsociety and other savings accounts unless it is specificallynon-taxable, for example, a non-taxable Individual SavingsAccount (ISA) etc.
However
Are non-taxed interest on savings of a non tax paying parent included in this scenario of specificallynon-taxable?
ie, if you have ordinary savings in an ordinary account that you do not pay tax on, due to being a non tax payer (ie do not work so do not earn)
I have not seen any advice anywhere that specifically explains this situation.
Any advice would be gratefully received, thanks.
0
Comments
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Accounts that aren't identified as tax free are not 'specifically non-taxable' - they need to be declared. If you don't pay tax because you earn below the threshold it doesn't automatically make the account a tax free account.0
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Thanks Hasty1991 for speedy reply.
Interestingly, we rang the student loan company and they said that ordinary tax free savings would be included in specifically non taxable, however we were still not convinced so decided to ask for other opinions on this forum. We shall maybe have to dig deeper.
Thank you again.0 -
In that case the interest is taxable...but at a rate of 0%.anothermam2 wrote: »To apply for a student loan you must declare parents interest on savings.
The Student finance England form states
You must include interest you receive on bank, buildingsociety and other savings accounts unless it is specificallynon-taxable, for example, a non-taxable Individual SavingsAccount (ISA) etc.
However
Are non-taxed interest on savings of a non tax paying parent included in this scenario of specificallynon-taxable?
ie, if you have ordinary savings in an ordinary account that you do not pay tax on, due to being a non tax payer (ie do not work so do not earn)
I have not seen any advice anywhere that specifically explains this situation.
Any advice would be gratefully received, thanks.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0
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