PSA

ST73

Can I earn £1000 interest in savings on top of the 12,570 tax free earnings? If so I presume this is better than an ISA as my savings won’t start going up massively until next May when my mortgage is paid off. I need to do a self assessment in January due to a very small income on a second house so I presume I have to declare it then? 

AndyTh_2

You can:

• earn £12,570 tax free on earnings (or savings/dividends if not used up fully by earnings) whilst not affected by the adjusted net income of £100k/y + tapered reduction of it
• earn up to £5000 savings interest tax free with income, other than savings and dividends, below £17,570 (every £1 above £12,570 reduces it by £1)
• earn £1000 savings interest tax free (which can be on top of the previous) when adjusted net income < £50,270, or £500 < £150k
• earn £2000 dividends tax free
• earn £12,300 capital gains tax free

ST73

Ok thank-you. I guess I don’t need to worry about paying savings interest just yet then!!  

Frequentlyhere

Anyone else come here expecting a Public Service Announcement? 

Alistair31

Frequentlyhere said:

Anyone else come here expecting a Public Service Announcement? 

First thought was prostate-specific antigen…

AndyTh_2

AndyTh_2 said:

You can:

• earn £12,570 tax free on earnings (or savings/dividends if not used up fully by earnings) whilst not affected by the adjusted net income of £100k/y + tapered reduction of it
• earn up to £5000 savings interest tax free with income, other than savings and dividends, below £17,570 (every £1 above £12,570 reduces it by £1)
• earn £1000 savings interest tax free (which can be on top of the previous) when adjusted net income < £50,270, or £500 < £150k
• earn £2000 dividends tax free
• earn £12,300 capital gains tax free

sorry I forgot another 3, not sure if the property one helps you

• £1000 tax free trade allowance
• £1000 tax free property allowance (seems to be about rental income, but I've no experience of it)
• £7,500 tax free from renting a room of your main residence