Savings Tax (R85)

molerat

The rules clearly? state that you do not take dividends into account when calculating your savings allowance so you have 10600 + 5000 = 15600 -11300 = £4300 tax free allowance for savings interest. Get those R85s back in. The bank rate is not going to increase that much but if it does before April next year you can de-register.

polymaff

jayell wrote: »

So, with this year's PA at £10600 + £5000 for savings, I have £11300-10600=£700 taxable. With £2500 From Shares and £1800 from savings(= £4300) Can I assume I will be on the 0% tax rate and so eligible for R85's.
And what happens if I unexpectedly get more savings return (if the bank rate should go up).
Sorry if I appear dim, but I am struggling here. Thanks

Yes.

Ah, an optimist! It would have to rise significantly to push your expected £1,800* of taxable savings income up to the £4,300 (£5,000 - (£11,300 - £10,600)) headroom you have in FY 2015/16.

*I assume that this is the gross interest expected in FY 2015/16.

jayell

I now know that ISA interest is of course tax free and Shares dividends are taxed seperately, but is the tax free interest from ISA's added to the together with ordinary BS interest to give one figure for the Personal Savings Allowance. Or is the ISA interest totaly disregareded for Personal Savings Allowance purposes.
So for example:
£11300 pa income + £2000 taxfree ISA interest + £3000 BS interest.
This would this exceed the £15600 for PSA.
or would it be just
£11300 + £3000 and hence tax free except for (£700 * 0.2) £140 Income tax.

jem16

jayell wrote: »

Or is the ISA interest totaly disregareded for Personal Savings Allowance purposes.

It is totally disregarded so don't include it in any calculations.