Is the Starting rate for savings still a thing?

xxdeebeexx

Hi, I'm just wondering if the staring rate for savings is still available this year 2019/2020 and if it's still £5000.
If so does it mean that, in the right circumstances, someone could have an income of £18,500 tax free?
£12,500 pa
£1,000 savings allowance
£5,000 0% starting rate for savings


many thanks


xxdeebeexx

Dazed_and_confused

Yes.

And yes it is a maximum of £5,000.

But there is no "savings allowance".

If you have the right mix of income you can have £20,500 without incurring any income tax liability.

£12,500 Personal Allowance
£5,000 interest taxed at 0% (savings starter rate)
£1,000 interest taxed at 0% (savings nil rate)
£2,000 dividends taxed at 0% (dividend nil rate)

Note the savings nil rate comes after the savings starter rate.

xxdeebeexx

Dazed_and_confused wrote: »

Yes.

And yes it is a maximum of £5,000.

But there is no "savings allowance".

If you have the right mix of income you can have £20,500 without incurring any income tax liability.

£12,500 Personal Allowance
£5,000 interest taxed at 0% (savings starter rate)
£1,000 interest taxed at 0% (savings nil rate)
£2,000 dividends taxed at 0% (dividend nil rate)

Note the savings nil rate comes after the savings starter rate.

Thank you.
Are the dividends paid tax free or do you have to claim the tax back?


xxdeebeexx

Dazed_and_confused

Since April 2016 no tax/notional tax has been deducted from normal dividend income.

xxdeebeexx

Dazed_and_confused wrote: »

Since April 2016 no tax/notional tax has been deducted from normal dividend income.

Thank for the quick and thorough answers.


xxdeebeexx