Tax on savings

uknick

zygurat789 wrote: »

The truth which is none of the above

Pensioner then?

I'm not trying to be a pain, honest. But, I'd really like to know a legitimate category for someone living off savings that does not penalise insurance premiums.

zygurat789

uknick wrote: »

Pensioner then?

I'm not trying to be a pain, honest. But, I'd really like to know a legitimate category for someone living off savings that does not penalise insurance premiums.

Surely the advice is not to give personal details over the internet.

molerat

None of the worked examples show share dividends, how do they fit into the picture with their slightly odd taxation ?

nomunnofun

molerat wrote: »

None of the worked examples show share dividends, how do they fit into the picture with their slightly odd taxation ?

A great question and the answer is ..... it depends!

If they have BOTH savings and dividend income and the other income is less than the total of the personal allowance PLUS the 10% rate band (12235 in 2013/14), the 10% band is available against the savings income and then we have the 10% rate on dividends up to the basic rate threshold. If the other income is greater than the total of the personal allowance PLUS the 10% savings rate band (12235), savings and dividend income is always charged at the top slice (savings before dividends)

Where the other income exceeds 12235 and one has either savings income or dividend income, either income is treated as the top slice of income.

I hope that I have explained this adequately.

:rotfl: