income tax allowance on savings

Hi, Being new to this I have searched but to no avail as to my question? I have read about allowances but nothing that matches my actual position which is.
No income for the last two years. Choice not inflicted.
Savings put away. 
What is the maximum I can earn through savings ONLY which are paid yearly before I am liable for any form of tax. As stated I do not have any income, no benefits or pension, nothing. Thanks
«1

Replies

  • edited 10 January at 12:00PM
    eskbankereskbanker Forumite
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    edited 10 January at 12:00PM
    It's likely to be £18,570 unless there is any adjustment via marriage allowance.

    https://www.moneysavingexpert.com/savings/tax-free-savings/

    Plus anything you earn within tax wrappers like ISAs of course....
  • lindabealindabea Forumite
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    Well, you will always have the £12570 personal allowance, plus the £5000 savings allowance and if that's not enough to offset against your savings income, you can also use £1000 personal savings allowance. So you can earn a total income of £18570 in interest before paying any tax.      
    Before doing something... do nothing
  • changearound1changearound1 Forumite
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    £18570 tax free.
  • edited 10 January at 12:41PM
    ColdIronColdIron Forumite
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    edited 10 January at 12:41PM
    £18570 tax free.
    <D&C>
    £6,000 of that is taxed at 0% so not 'tax free' B)
    </D&C>
  • Dazed_and_C0nfusedDazed_and_C0nfused Forumite
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    ColdIron said:
    £18570 tax free.
    <D&C>
    £6,000 of that is taxed at 0% so not 'tax free' B)
    </D&C>
    Top post today 😂
  • Middle_of_the_RoadMiddle_of_the_Road Forumite
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    ColdIron said:
    £18570 tax free.
    <D&C>
    £6,000 of that is taxed at 0% so not 'tax free' B)
    </D&C>
     ? Oxymoron
  • EthicsGradientEthicsGradient Forumite
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    ColdIron said:
    £18570 tax free.
    <D&C>
    £6,000 of that is taxed at 0% so not 'tax free' B)
    </D&C>
     ? Oxymoron
    It's a subtle distinction, beloved of some posters here. The difference between "tax free" and "taxed at a rate that we have set at 0%" makes no practical difference to someone in the OP's situation, but for a few people on the borderlines of allowances might have a real effect. It's also useful for confusing new members ...
  • Middle_of_the_RoadMiddle_of_the_Road Forumite
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    ColdIron said:
    £18570 tax free.
    <D&C>
    £6,000 of that is taxed at 0% so not 'tax free' B)
    </D&C>
     ? Oxymoron
    It's a subtle distinction, beloved of some posters here. The difference between "tax free" and "taxed at a rate that we have set at 0%" makes no practical difference to someone in the OP's situation, but for a few people on the borderlines of allowances might have a real effect. It's also useful for confusing new members ...
    Thanks, I hear what you say. Also, tax matters can be confusing, at the best of times.
  • Dazed_and_C0nfusedDazed_and_C0nfused Forumite
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    ColdIron said:
    £18570 tax free.
    <D&C>
    £6,000 of that is taxed at 0% so not 'tax free' B)
    </D&C>
     ? Oxymoron
    It's a subtle distinction, beloved of some posters here. The difference between "tax free" and "taxed at a rate that we have set at 0%" makes no practical difference to someone in the OP's situation, but for a few people on the borderlines of allowances might have a real effect. It's also useful for confusing new members ...
    Thanks, I hear what you say. Also, tax matters can be confusing, at the best of times.
    They certainly can.

    Someone with total taxable earnings or pension of £100k gets a Personal Allowance of £12,570.

    But add in £500 of interest taxed at 0% and their Personal Allowance is only £12,320.

    Resulting in additional tax payable of £100.

    So that "tax free" £500 has actually cost £100 in extra tax.

    Similar problem exists for some people liable to HICBC and some of those eligible for Married Couple's Allowance.
  • SpeculatorSpeculator Forumite
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    Also, if you reach over £10,000  in savings interest, I think you have to fill in a self assessment form.
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