What would you do with £15k

MDMD

HamSoulo said:

Eco_Miser said:

HamSoulo said:

Spouse earnings: So she can earn £12500 as interests from Savings and current accounts with no tax liability! I wish we had that substantial savings to be honest, to earn significant amount of interest. However its good to know.

A person on a low income can receive each financial year

• £12500 from any source: earnings, pensions, Halifax rewards, dividends, and interest, PLUS
• £5000 further interest, PLUS
• £1000 further interest, PLUS
• £2000 further dividends, PLUS
• £12300 in realised Capital Gains
  

all without paying any income tax or capital gains tax, in addition to whatever they may receive inside an ISA.

That's Personal Allowance, Starting Rate for Savings, Interest Allowance (a 0% tax band), Dividend Allowance (another 0% tax band), and Capital Gains Allowance.

No wonder some Higher Rate taxpayers give their spouses all their spare money to invest.

Eco_Miser What you are saying is a non earning person/ low earner can earn £32800 through the sources you mentioned in your post, TAX Free??? That doesnt seem right! 
Did you mean OR instead of PLUS?

Although the chance of anyone getting £6k interest a year at the moment is largely slim to nil. And if they are they are more likely to have so much in cash that paying some tax should be the least of their worries.

IAMIAM

In my honest opinion, premium bonds until I need it. Mortgage rates are soo low, my pension is maxed at contributions and savings rates are non existent for the next few years. 

Aceace

MDMD said:

HamSoulo said:

Eco_Miser said:

HamSoulo said:

Spouse earnings: So she can earn £12500 as interests from Savings and current accounts with no tax liability! I wish we had that substantial savings to be honest, to earn significant amount of interest. However its good to know.

A person on a low income can receive each financial year

• £12500 from any source: earnings, pensions, Halifax rewards, dividends, and interest, PLUS
• £5000 further interest, PLUS
• £1000 further interest, PLUS
• £2000 further dividends, PLUS
• £12300 in realised Capital Gains
  

all without paying any income tax or capital gains tax, in addition to whatever they may receive inside an ISA.

That's Personal Allowance, Starting Rate for Savings, Interest Allowance (a 0% tax band), Dividend Allowance (another 0% tax band), and Capital Gains Allowance.

No wonder some Higher Rate taxpayers give their spouses all their spare money to invest.

Eco_Miser What you are saying is a non earning person/ low earner can earn £32800 through the sources you mentioned in your post, TAX Free??? That doesnt seem right! 
Did you mean OR instead of PLUS?

Although the chance of anyone getting £6k interest a year at the moment is largely slim to nil. And if they are they are more likely to have so much in cash that paying some tax should be the least of their worries.

It doesn't just cover interest on cash savings, it also covers interest on P2P investments. I split my investment portfolio roughly 50/50 between S&S and P2P, so it's quite easy to make use of the full allowances. 

wmb194

MDMD said:

HamSoulo said:

Eco_Miser said:

HamSoulo said:

Spouse earnings: So she can earn £12500 as interests from Savings and current accounts with no tax liability! I wish we had that substantial savings to be honest, to earn significant amount of interest. However its good to know.

A person on a low income can receive each financial year

• £12500 from any source: earnings, pensions, Halifax rewards, dividends, and interest, PLUS
• £5000 further interest, PLUS
• £1000 further interest, PLUS
• £2000 further dividends, PLUS
• £12300 in realised Capital Gains
  

all without paying any income tax or capital gains tax, in addition to whatever they may receive inside an ISA.

That's Personal Allowance, Starting Rate for Savings, Interest Allowance (a 0% tax band), Dividend Allowance (another 0% tax band), and Capital Gains Allowance.

No wonder some Higher Rate taxpayers give their spouses all their spare money to invest.

Eco_Miser What you are saying is a non earning person/ low earner can earn £32800 through the sources you mentioned in your post, TAX Free??? That doesnt seem right! 
Did you mean OR instead of PLUS?

Although the chance of anyone getting £6k interest a year at the moment is largely slim to nil. And if they are they are more likely to have so much in cash that paying some tax should be the least of their worries.

Don't forget interest bearing investments like corporate and government bonds.

Eco_Miser

HamSoulo said:

Eco_Miser said:

HamSoulo said:

Spouse earnings: So she can earn £12500 as interests from Savings and current accounts with no tax liability! I wish we had that substantial savings to be honest, to earn significant amount of interest. However its good to know.

A person on a low income can receive each financial year

• £12500 from any source: earnings, pensions, Halifax rewards, dividends, and interest, PLUS
• £5000 further interest, PLUS
• £1000 further interest, PLUS
• £2000 further dividends, PLUS
• £12300 in realised Capital Gains
  

all without paying any income tax or capital gains tax, in addition to whatever they may receive inside an ISA.

That's Personal Allowance, Starting Rate for Savings, Interest Allowance (a 0% tax band), Dividend Allowance (another 0% tax band), and Capital Gains Allowance.

No wonder some Higher Rate taxpayers give their spouses all their spare money to invest.

Eco_Miser What you are saying is a non earning person/ low earner can earn £32800 through the sources you mentioned in your post, TAX Free??? That doesnt seem right! 
Did you mean OR instead of PLUS?

I mean PLUS. Of course you need considerable investments to generate that income, and it's virtually impossible to get that exact income, without going over and becoming liable to tax, or going under and not getting quite so much (my preferred position).

As mentioned by another poster, the CGT is a different tax, and you need to sell enough to make a gain of (just under) £12300 to make full use of the allowance. And then probably buy something else with the proceeds that are not gain, to maintain your investment level.

Note that a normal basic rate taxpayer gets £12500 earned income tax free, £1000 interest, £2000 dividends and £12300 realised capital gains, a total of £27800, it's only the Starting Rate for Savings that's special for low earners.