Does anyone know anything about a 6k tax free investment allowance if you are not earning?

YankeeGran

I am in my 70s, not earning and dependent for much of my income on dividends. Heard from a friend with a similar situation that she had been advised that there is a tax free investment allowance if not earning, but I can't find anything online about this. I would be grateful for confirmation or clarification.
Thanks

tacpot12

The allowance for dividend income is £2000. The tax rates are given here:  Tax on dividends - GOV.UK (www.gov.uk)

You can hold your investments in an Individual Savings Account (ISA) tax wrapper that means you would not pay ANY tax on any dividends. You can pay upto £20,000 into an ISA tax wrapper every year, and buy all the usual investments within the wrapper and pay no tax on the dividends.  

There are details on the link about how to pay the tax that is due. 

Jeremy535897

I think you may mean the starting rate for savings. See https://www.litrg.org.uk/tax-guides/tax-basics/what-tax-rates-apply-me#how-does-the-starting-rate-for-savings-work

This £5,000 band plus the £1,000 personal savings allowance may be the £6,000 you mention in the heading of the thread.

The rest of the information on the page I have linked may also be of interest to you.

tacpot12

Jeremy535897 said:

I think you may mean the starting rate for savings. See https://www.litrg.org.uk/tax-guides/tax-basics/what-tax-rates-apply-me#how-does-the-starting-rate-for-savings-work

This £5,000 band plus the £1,000 personal savings allowance may be the £6,000 you mention in the heading of the thread.

The rest of the information on the page I have linked may also be of interest to you.

If this is the allowance you are thinking of it relates to cash savings not held in an ISA.