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Understanding the new Personal Savings Allowance
LeafGreen
Posts: 576 Forumite
Hi,
I have around £120K in cash savings. Std rate taxpayer.
£50K premium bonds, £50K (roughly) cash ISA. Remainder in Santander 123 + various other current accounts.
I'm wondering if the £1000 personal savings allowance takes into account interest earned on my tax free savings (of £100K)?
If I averaged 1.5% on everything, that would come to £1800 interest per year, but £1500 of that would be tax free anyway - would the remaining £300 be considered within my allowance?
Thanks!
I have around £120K in cash savings. Std rate taxpayer.
£50K premium bonds, £50K (roughly) cash ISA. Remainder in Santander 123 + various other current accounts.
I'm wondering if the £1000 personal savings allowance takes into account interest earned on my tax free savings (of £100K)?
If I averaged 1.5% on everything, that would come to £1800 interest per year, but £1500 of that would be tax free anyway - would the remaining £300 be considered within my allowance?
Thanks!
0
Comments
-
Interest earned in the ISA is tax free.
In addition, you can earn up to £1000 (£500) tax free interest from other savings.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/414026/Savings_factographic_final.pdf0 -
Thankyou :-)0
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