My only income is from savings interest - how much can I get tax free? £18,570 or £12,570?

Bigwheels1111

When I sold my house that I had lived in and rent out I had to pay CGT.
My income was less than 4k. So a lot was covered within my tax code.
Still cost me 10k aghhhhhhhhh.

badger09

Dazed_and_C0nfused said:

but then today spoke to a friends accountant and he said I would have to pay tax as the “Personal Allowance” is the threshold for people working before they start to pay income tax and it doesn’t apply to me in my situation, it only applies to people who are actually employed and are earning an income (wages).

Oh dear 😳.

Assuming you are UK resident and actually entitled to a Personal Allowance then the answer is either £18,570 or £17,310 (if you have applied for Marriage Allowance).

Once you have used your Personal Allowance the next £6,000 of interest would be taxed at 0%.

BIB without wishing to sidetrack further, even if you are not UK resident, you can claim PA to set against UK income. 

See here for rules

https://www.gov.uk/tax-uk-income-live-abroad/personal-allowance