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PSA and low earnings.
rickyxsara
Posts: 7 Forumite
My wife earns about £5000 a year in part time work. How much savings interest can she earn without having to pay tax on it. Thank you.
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Comments
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Depends on whether she had applied for Marriage Allowance and any other income she has (pension, rental income etc) but if we assume no other income apart from savings interest and that she hasn't applied for Marriage Allowance then it is £13,500.
£7,500 is covered by the remaining Personal Allowance
£5,000 is taxed at 0% courtesy of the savings starter rate of tax
£1,000 is taxed at 0% courtesy of the savings nil rate of tax (aka Personal Savings Allowance)
And it is in that order. So she cannot make use of the savings nil rate (PSA) unless she has a lot of savings interest.0
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