Tax Bands

Hitting

I’m aware Dividends/interest from ISAs need not be included on tax returns, but I assume it needs to be considered when determining total income when establishing your tax band....ie above or below say £50k band?

Tom99

No you do not include the tax free interest/dividends to establish your tax band

polymaff

To quote the legislation:

The calculation of income tax liability

To find the liability of a person (“the taxpayer”) to income tax for a tax year, take the following steps.

Step 1

Identify the amounts of income on which the taxpayer is charged to income tax for the tax year.


So Tax-free (not the same as taxable at 0%) income plays no part in your assessment.


http://www.legislation.gov.uk/ukpga/2007/3/section/23