Tax on savings account interest

Dazed_and_C0nfused

Form R85 is no longer in use as all normal bank and building society is paid gross irrespective of whether tax will be owed on it or not.

The figure you are looking for is £17,310.  Or £18,570 if she hasn't applied for Marriage Allowance.

This assumes your comment below is correct and you haven't overlooked some taxable income (that isn't interest or dividends) that will be received in this tax year.

My wife does not work, has no income, pension etc, 

RL11

If your wife has no income and therefore pays no tax, she can receive up to £6,000 in interest tax free.

How the starting rate for savings works - Money Saving Expert

Any interest received in an ISA account is tax free too.

I am worried that the Labour party might tamper with how this currently works, in their October budget!

Dazed_and_C0nfused

RL11 said:

If your wife has no income and therefore pays no tax, she can receive up to £6,000 in interest tax free.

How the starting rate for savings works - Money Saving Expert

Any interest received in an ISA account is tax free too.

I am worried that the Labour party might tamper with how this currently works, in their October budget!

You're forgetting about the Personal Allowance, either £11,310 or £12,570.

That has to be used before the 0% tax bands can be used.

RL11

Sorry @Dazed_and_C0nfused, didn't see your post at the end and thought there was no response to the previous poster. Your are correct, of course. The wife will need to put in a huge amount of savings to get > £18,570 interest!

Dazed_and_C0nfused

RL11 said:

Sorry @Dazed_and_C0nfused, didn't see your post at the end and thought there was no response to the previous poster. Your are correct, of course. The wife will need to put in a huge amount of savings to get > £18,570 interest!

Yes, a nice position to be in if you can manage it!