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Personal savings allowance draft legislation
MDMD
Posts: 1,571 Forumite
The rules can be found here
https://www.gov.uk/government/publications/income-tax-personal-savings-allowance
Basically it seems to operate as expected, although the interest itself forms part of the income that is used to determine whether you get £1,000, £500, or £0. Basically if you get a pound of income at 40%, you lose £500 of allowance, so for those people the benefit of paying that pound into a pension will be quite large....
ISA interest does not count, nor does, it appears, any interest that is currently taxed at 0% (if total income is less than £15k or so).
https://www.gov.uk/government/publications/income-tax-personal-savings-allowance
Basically it seems to operate as expected, although the interest itself forms part of the income that is used to determine whether you get £1,000, £500, or £0. Basically if you get a pound of income at 40%, you lose £500 of allowance, so for those people the benefit of paying that pound into a pension will be quite large....
ISA interest does not count, nor does, it appears, any interest that is currently taxed at 0% (if total income is less than £15k or so).
0
Comments
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So they sorted out the Stamp Duty precipice situation, ,to create a new Personal Savings Allowance once? Lots of transfers between spouses, I guess, as there always has been where one is on a lower tax rate than the other.Mortgage Free thanks to ill-health retirement0
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