£5000 interest tax free on earnings below £11,000

Peter167

I saw nothing in the budget on this. Also, in introducing the £5K div allowance the Chancellor said £17K of earnings can now be tax free. That should be £22K if the savings and divs allowances are combined with the new £11K income allowance (plus 1K savings allowance for all). Anyone know if the saving allowance has been dropped?

The £5K savings allowance is showing in the 2015-16 tax table on the.gov site.

masonic

There's some discussion around this here: https://forums.moneysavingexpert.com/discussion/comment/68748347#Comment_68748347

talexuser

I could not find a definitive official answer to this one, except here:

http://www.moneysavingexpert.com/savings/tax-free-savings

where the new universal 1K allowance replaces the 5k savings allowance next year, except for those who still qualify who appear to get a 2k savings allowance for one year only. After that everyone on basic tax is on 1k?

Peter167

Okay, being discussed in the other thread so no point duplicating here. Let's close this thread.