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higher rate tax threshold

etienneg · 2015-12-11 14:28:28

I know that the higher rate tax threshold this year is £42,385. Is this just salary, or does it include savings interest? For example, suppose someone has a salary of £42,000 and savings (gross) interest of £1,000. Is this person a standard rate or higher rate taxpayer?

Comments

kidmugsy Posts: 12,709 Forumite

14 December 2015 at 12:44AM

MDMD wrote: »

Latest guidance is here:

Many thanks. For my purposes the key passage is:

"Dividend income that is within the dividend allowance (and savings income within the new savings allowance) will still count towards an individual’s basic or higher rate limits - and may therefore affect the level of savings allowance that they are entitled to, and the rate of tax that is due on any dividend income in excess of this allowance."

Free the dunston one next time too.
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