Not Earning An Income. 13 March at 5:37PM in ISAs & tax-free savings 5 replies 183 views

Cash4Ever

Hello, I'm currently living off my own means, I don't have an income or claim any benefits so wanted to know if I could earn more than the personal allowance of £1000 tax free savings because of not having an income. Would appreciate any feedback.
Thx In Advance.

JGB1955

Yes AIUI you can receive up to £12,570 as your tax-free Personal Allowance.  Then you can add on £5,000 taxed at 0% as the Starting Rate for Savings, THEN add on the £1,000 Personal Savings Allowance (at 0%).  So that's got you up to £18,570.  If you receive dividends from shares you can add on another £2,000 at 0% (going down to £1,000 for 2023/24).  Getting all those eggs in the right baskets might be a challenge though! 
@Dazed_and_C0nfused will be along shortly to put me right!

Albermarle

Tax-free savings: check if you're eligible - Money Saving Expert

Cash4Ever

Thankyou JGB1955 and Albermarle for your quick response, really appreciate it.

Just as a side question on this subject too, I have Shares which i got through a share save employment scheme, could i cash some shares and avoid paying tax still as long as the shares and interest made from savings accounts don't exceed the £18,570 that you mentioned, sorry JGB1955 if you touched on that already, wanted to be sure I wasn't braking any tax rules.
Thx Again to you both.

eskbanker

Cash4Ever said:

Just as a side question on this subject too, I have Shares which i got through a share save employment scheme, could i cash some shares and avoid paying tax still as long as the shares and interest made from savings accounts don't exceed the £18,570 that you mentioned

The £18,570 figure relates to income tax, but selling shares would fall within capital gains tax, a separate regime altogether, but you'd only be subject to CGT if the gain on the shares (i.e. proceeds minus acquisition value) exceeds your annual CGT allowance, which is still £12,300 for the next few weeks, then £6K.

Cash4Ever

Thanks eskbanker for clarifying that for me, really appreciate it.