Budget 2015

Ed-1

lightbulb2760 wrote: »

So will this new £1000 tax free savings allowance operate instead of, or in addition to, the £5000 nil-rate tax band on savings announced in last year's Budget, to be introduced this April?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/414026/Savings_factographic_final.pdf

In addition to. You can earn taxable income of up to £16800 from 6th April 2016 without paying tax on savings.

Daniel54

lightbulb2760 wrote: »

So will this new £1000 tax free savings allowance operate instead of, or in addition to, the £5000 nil-rate tax band on savings announced in last year's Budget, to be introduced this April?

See Item 1.224 which has a chart setting this out.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/413949/47881_Budget_2015_Web_Accessible.pdf

steelbru

Wonder if the new £1000 tax free savings allowance, resulting in interest being paid gross will also apply to NS&I Pensioner Bonds and P2P ? It only mentions banks and building societies

Ed-1

steelbru wrote: »

Wonder if the new £1000 tax free savings allowance, resulting in interest being paid gross will also apply to NS&I Pensioner Bonds ?

NS&I will not tax interest from April 2016, just like all other banks and building societies.

Pincher

Comes in quite handy.


The Santander 123 pays 3% on £20k, so it's £600.
A couple of Regular Savers at at ~6% generates about £200.


It makes the stoozing a bit more profitable.




The annoying thing is my mother's 4% Pension Bond.
If the interest was paid annually, then it's all tax free.
£400 a year is ~£1,200 in year three, so £200 over the limit.

Ed-1

Pincher wrote: »

Comes in quite handy.


The Santander 123 pays 3% on £20k, so it's £600.
A couple of Regular Savers at at ~6% generates about £200.


It makes the stoozing a bit more profitable.




The annoying thing is my mother's 4% Pension Bond.
If the interest was paid annually, then it's all tax free.
£400 a year is ~£1,200 in year three, so £200 over the limit.

The interest is paid annually.

xylophone

The annoying thing is my mother's 4% Pension Bond.
If the interest was paid annually, then it's all tax free.
£400 a year is ~£1,200 in year three, so £200 over the limit.

The interest is taxable in the year it is added to the bond though not paid out?

http://www.telegraph.co.uk/finance/personalfinance/savings/11288999/Revealed-the-tax-sting-on-the-Governments-pensioner-bonds.html

http://www.nsandi.com/65-guaranteed-growth-bonds

""We calculate the interest on the daily balance, and add it to your Bond on each anniversary of investment. So for the 1-year Bond we’ll add the interest when your Bond matures. And for the 3-year Bond we’ll add the interest each year, so you will get the benefit of compound interest.

We take off tax at the basic rate (currently 20%) when we add the interest to your Bond.

mgdavid

Rollinghome wrote: »

Will that mean that all those who earn a pound more than £1000 in interest will have to fill in tax returns of some kind to declare it? Many may be on PAYE or pensioners supplementing their pensions who have never needed to complete tax returns before.

Not sure that will go down well apart from with those looking for overtime pay at HMRC.

keep up
https://forums.moneysavingexpert.com/discussion/5200577

gterr

gadgetmind wrote: »

Hmmm, I wonder what abolishing Class 2 is going to involve? Does this mean that those not earning enough to pay Class 4 won't get a qualifying year for state pension? And this is being presented as something being done *for* the self-employed?

Yes, indeed. I was hoping to accrue additional state pension entitlement by continuing to make Class 2 NI payments for a few years after April 2016. My self-employed income is low and I will probably not pay Class 4s. Interesting to see how this pans out for all self-employed low earners.

ipri

Does the tax free interest apply to each account...or savings as a whole?