Question re understanding of tax on savings interest 24 November 2022 at 1:22PM in Savings & investments 2 replies 176 views

EssexHebridean

Hello - just wanting to check that my understanding here is correct. 

In a scenario where someone earns £15,500 - am I correct in thinking that they then get benefit of just over £2k of the Starter Savings rate, PLUS the personal savings allowance of an additional £1k - meaning that just over £3k of savings interest could be earned before tax would become payable on that interest? Apologies if any of the terminology I'm using here isn't entirely correct - hopefully the premise of the question is clear though! 

Dazed_and_C0nfused

If the only taxable non savings non dividend income is £15,500 and you haven't applied for Marriage Allowance then you can earn,

£2,070 - savings starter rate (0%)
£1,000 - savings nil rate (0%)

EssexHebridean

Thank you - that confirms I wasn't going mad/overthinking/completely misunderstanding the situation then.  

Much appreciated!