Personal Savings Allowance £1,000

BL52

My wife may have over £1,000 in bank interest but is unemployed. Does any excess interest over £1,000 offset against her personal allowance?

If not, is it better for her to invest in an ISA?


BL52

00ec25

"everyone" is entitled to £11,850 tax free. Only if their TOTAL income is greater than that will the other allowances become relevant.

So is she getting >11,850 of income ?
No, from what you say she is not

kidmugsy

BL52 wrote: »

My wife may have over £1,000 in bank interest but is unemployed. Does any excess interest over £1,000 offset against her personal allowance?

Yes, ja, oui, si, and ita vero.

chrisbur

There ia also a £5000 savings allowance at 0% which may also apply fully or in part depending on other earnings.
https://moneyfacts.co.uk/guides/savings/how-are-my-savings-taxed/

If not already doing it might be worth looking at....
https://www.gov.uk/marriage-allowance

Dazed_and_confused

We don't know your wife's full circumstances however going by your original post I think there is a strong chance she is excluded from being able to benefit from the Personal Savings Allowance.

PSA isn't something people with low income can use, simply because they don't need it

You have to have income in excess of £16,850 (current tax year) before being able to use the Personal Savings Allowance. If her income is less than that then the interest will either be covered by her Personal Allowance or is liable to be taxed under the savings starter rate of tax. Which is 0%

If she has applied for Marriage Allowance then £16,850 figure becomes £15,660.