Maybe no tax on my savings next year

cepheus

When the pension drawdown rules apply I guess some people would be able to earn more tax free. If my calculations are correct, you could potentially draw £14,000 from your pension pot in the year. A quarter of this is tax fee, leaving the £10,500 tax free annual allowance. To this you could add £5000 savings income which (unless you had a fortune) would probably have to be accumulated through higher interest means, such as 'P2P lending'. (It goes into that section of the tax form). So that's means next year you can have £14000+£5000 = £19000 tax free prior to any ISAs or NS&I index linked certificates! Very generous - for the taxpayer at least! You will probably need it for when the health service collapses through lack of revenue though.