self assessment - Untaxed UK interest vs personal savings allowance

chamelion

Hi there all,

As a higher rate tax payer, I understand I have a £500 personal savings allowance this year. 

Now, let's say for illustration I made £600 of interest. I need to declare this in the untaxed UK interest section in self assessment. Should I enter in £600 (i.e. it will automatically make the first 500 of this non taxed, and tax me 40% on the £100?) or should I enter in £100 (i.e. the amount OVER my personal savings allowance). 

Thanks!

kuratowski

You enter the full amount.

Dazed_and_C0nfused

All £600 will be taxed.

£500 will be taxed at 0% and £100 at 40%.

Remember that the £600 is part of your adjusted net income for the purposes of calculating your Personal Allowance and any High Income Child Benefit Charge due.

chamelion

Thank you folks - that's clear. I'll put in my equivalent of the £600 then!