Personal Savings Allowance - eligibility for £1,000 allowance - Adj net income or taxable income

lonibra

I understand that the eligibility for £1,000 allowance is if you are not a higher rate taxpayer.

Please could someone tell me how this is determined? Is it the adjusted net income that is used or taxable income?

Dazed_and_C0nfused

I think you simply look at your tax position ignoring the PSA (which is actually a 0% tax band, like the savings starter rate) and I'd you are higher rate then the PSA maximum is £500 rather than £1,000.

lonibra

Sorry what do you mean by tax position? 

My taxable income is above 50k but I always make sufficient additional pension contributions to bring my ANI to about £49,500 to effectively avoid paying any 40% tax.

ukri

If this website is legit, it’s the ANI so you should have a 1k PSA.

Dazed_and_C0nfused

lonibra said:

Sorry what do you mean by tax position? 

My taxable income is above 50k but I always make sufficient additional pension contributions to bring my ANI to about £49,500 to effectively avoid paying any 40% tax.

You calculate your tax liability ignoring the PSA rate band.

If you aren't a higher rate payer then you get maximum of £1,000 interest taxed at 0%.

lonibra

ukri said:

If this website is legit, it’s the ANI so you should have a 1k PSA.

Thank you! That answers my question and gives me the answer that I hoped for The website looks authoritative on these matters.