Not Earning An Income.

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.

Comments

  • JGB1955
    JGB1955 Posts: 3,476 Forumite
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    edited 13 March 2023 at 5:49PM
    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!
    #2 Saving for Christmas 2024 - £1 a day challenge. £131 of £366
  • 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
    eskbanker Posts: 30,947 Forumite
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    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.
  • Thanks eskbanker for clarifying that for me, really appreciate it. 
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