PSA

214

Please can you tell me what type of Annuity comes under your PSA?

Linton

PSA?? prostate cancer test, owners of Peugeot, Planetary Science Archive?  Please translate.

Alistair31

Public service announcement?

soulsaver

Welcome to this friendly forum... long standing members should know better.

Income from an annuity is not treated as savings by HMRC, so doesn't come 'under' PSA.

lozzy1965

soulsaver said:

Welcome to this friendly forum... long standing members should know better.

Income from an annuity is not treated as savings by HMRC, so doesn't come 'under' PSA.

They are a bit cheeky aren't they!  However it would be nice to know what PSA stands for!!!  I still have no idea
Guessing at Personal Savings Allowance - but that is just from the context of your answer - not the original question.

eskbanker

https://www.gov.uk/apply-tax-free-interest-on-savings does refer to interest from life annuity payments being included within the Personal Savings Allowance:

Interest covered by your allowance

Your allowance applies to interest from:

• bank and building society accounts
• savings and credit union accounts
• unit trusts, investment trusts and open-ended investment companies
• peer-to-peer lending
• trust funds
• payment protection insurance (PPI)
• government or company bonds
• life annuity payments
• some life insurance contracts

Popularoldie

PSA

With regards to savings interest I am reading the text below.

"Please also note that the PSA comes on top of the normal personal allowance (£12,570) and the starting rate for savings (£5,000). These two things taken together mean that anyone with total taxable income of less than £17,570 (for example, from wages, profits, pensions and savings – not including dividends) will generally pay no tax on their bank or building society interest in 2022/23, even without the PSA."

A few questions:
I am to receive a pension. With my PSA it will put me over the £17,570 threshold between £200 & £700. 

Can I reduce my total income by transferring part of personal allowance to my spouse thus falling under the £15570 threshold?

 

If so how to I do this please?

Dazed_and_C0nfused

Popularoldie said:

PSA

With regards to savings interest I am reading the text below.

"Please also note that the PSA comes on top of the normal personal allowance (£12,570) and the starting rate for savings (£5,000). These two things taken together mean that anyone with total taxable income of less than £17,570 (for example, from wages, profits, pensions and savings – not including dividends) will generally pay no tax on their bank or building society interest in 2022/23, even without the PSA."

A few questions:
I am to receive a pension. With my PSA it will put me over the £17,570 threshold between £200 & £700. 

Can I reduce my total income by transferring part of personal allowance to my spouse thus falling under the £15570 threshold?

 

If so how to I do this please?

You seem to be confused.

If you apply for Marriage Allowance all it means is you have a reduced Personal Allowance, it has no bearing whatsoever on how much taxable income you have.

Do you mean your total non savings non dividend income i.e. taxable wages, pension, State Pension, rental income etc is more than £17,570?

Popularoldie

Should read £17570

Dazed_and_C0nfused

Popularoldie said:

Should read £17570

If your non savings non dividend income is at least £17,570 and you aren't a higher rate taxpayer then it's highly likely you can just have £1,000 of interest taxed at 0% (savings nil rate band aka Personal Savings Allowance).

Above £1,000 you will have to pay 20% tax on it.