Starting rate for savings

Lizzie600

It would appear I am eligible for the starting rate for savings- £5,000. Do I need to apply for it or is it taken into account automatically? I presently do have a pension and tax code through HMRC.

Albermarle

It should happen automatically. If your pension is less than £12570 ( normally your personal tax allowance)  then any interest will use the rest of this first, before then using the £5000 starter rate for savings.

If you supply your tax code, pension and any other income, then you can get a fully accurate answer.

Dazed_and_C0nfused

Lizzie600 said:

It would appear I am eligible for the starting rate for savings- £5,000. Do I need to apply for it or is it taken into account automatically? I presently do have a pension and tax code through HMRC.

It's not something you can apply for.

If you are able to benefit from it then HMRC will take it into account when calculating your tax liability.

You have to use your full Personal Allowance (£11,310 or £12,570) before the savings starter rate can be used.

And any available savings starter rate must be used before you can use the savings nil rate band (aka Personal Savings Allowance).