What is the limit in savings before having to pay tax.

emerald21

Hi does anyone know what is the limit in savings in building societies/ banks before the person is liable for tax please ?

Torry_Quine

It's the interest on savings not the actual savings that matters. You have one allowance which includes all income.

This should help https://www.gov.uk/apply-tax-free-interest-on-savings

badger09

QUOTE=emerald21;discussion/5099955]Hi does anyone know what is the limit in savings in building societies/ banks before the person is liable for tax please ?[/QUOTE]

Depends on that person's total income. Interest on non ISA savings is part of total income.

Basic personal allowance (ie before you start paying tax) in 2014/15 is £10k

Archi_Bald

Torry_Quine wrote: »

It's the interest on savings not the actual savings that matters. You have one allowance which includes all income.

Depending on your total income, it isn't quite as straight forward as that.

If the OP specifies some figures (age, income from employment, income from savings, details about the type of savings accounts, is interest paid gross or net etc) it would be easier to answer the Q.

Alternatively, the OP can get information from http://www.hmrc.gov.uk/taxon/bank.htm

Significant positive changes coming next April, too, for lower incomes.

emerald21

Hi all thanks for the replies. The person is disabled and doesn t pay tax. He is also 66. The savings in building society is about £7,000 .

le_loup

emerald21 wrote: »

Hi all thanks for the replies.

Which you did not read!
What is the interest? What is his other income?

Archi_Bald

emerald21 wrote: »

Hi all thanks for the replies. The person is disabled and doesn t pay tax. He is also 66. The savings in building society is about £7,000 .

He probably does not have to pay tax on the savings but with the data you have provided it cannot be said for certain. He also might automatically be paying tax on the savings as that is the default.

For better answers, can you provide more information please:

1. What is his total income from employment and benefits?
2. What is his total income from investments? (probably zero)
3. What is his total income from savings?
4. What type of account are the savings in?
5. What is his AER of the savings?
6. Is the savings interest paid gross or net?

Or you/he could work it all out yourself from the HMRC website that I linked to previously.