Just received state pension......and have small dividend paying investments.

dunstonh

Dividend allowance would take care of the bulk of it. Then do annual bed & pension and bed & ISA until its all wrapped instead of unwrapped.

Misterkevster

molerat said:

But you also need to know exactly what that income is - dividends or interest - as it is taxed differently

https://www.litrg.org.uk/tax-guides/pensioners/what-tax-do-i-pay-savings-and-dividend-income

They're income producing shares...with Fidelity UK
Need to check on this

Audaxer

Marcon said:

Misterkevster said:

OK....get it into an ISA asap!
But what about the 'income' that is being received?
Am I best to forego that income....and convert investments to 'growth' types??

As for ISAs - you may get much better rates elsewhere, so don't rush to move your funds there when it might not be to your benefit.

I think the other posters were indicating that the OP should get the investments into an S&S ISA asap (up to £20k each tax year), so that eventually the OP wouldn't be liable to pay tax on the dividend income from these investments.

Dazed_and_C0nfused

Misterkevster said:

molerat said:

Do you need the income ?   If so can you get that income from an ISA ?

You need to know exactly what your teachers and state pension income is and deduct that from £18570 to see how much, if any, would be taxable.

Aaaaggghhh.....£18570 (not £12570)
My total pensions and income would be less than this!!

The £18,570 isn't relevant to your non savings and non dividend income i.e. your two pensions.

So if they are £15,000 you will pay tax on £2,430 of your pension income.

And will be able to earn the following amounts of taxable interest and dividends with it all being taxed at 0%

£2,570 interest (savings starter rate)
£1,000 interest (savings nil rate)
£2,000 dividends (dividend nil rate)