Personal Savings Allowance

SeanWor

Looking for some advice. I've inherited some money that I'm going to invest. In future years the interest on this savings will need to be shown on my SA Return and will obviously show an increase in my Interest received compared to previous years - although it is not likely to exceed the £1000 ceiling. Should I put a note on my return to explain that the increase is because of an inheritance? Any advice would be greatly appreciated.

colsten

If you are a BR tax payer and your annual income from savings interest is below £1,000, you don't need to make a Self Assessment Return. 

If you are making a Self Assessment Return for other reasons, you specify the amount of interest you have received, and you'll automatically be given the allowance for up to £1,000 of savings interest.

If you are actually making £1,000 interest in these dire times, you have a very substantial sum of cash, and unless you plan to spend it in the next 5-7 years, you might want to look into investments, which are treated differently from savings.