Personal tax allowance (savings)

savings37

With interest rates on the up it's easier to hit the £1000 personal tax free savings allowance.

Am I right I'm thinking and what I have read that if my partner earns £12570 gross per year, that would enable interest from savings to be earned (tax free) of £5000 before being liable for 20% tax. 

The .gov.uk quotes a figure of £17570.

25_Years_On

Yes but the £1000 allowance is also applicable so in total it is £18570.

Dazed_and_C0nfused

savings37 said:

With interest rates on the up it's easier to hit the £1000 personal tax free savings allowance.

Am I right I'm thinking and what I have read that if my partner earns £12570 gross per year, that would enable interest from savings to be earned (tax free) of £5000 before being liable for 20% tax. 

The .gov.uk quotes a figure of £17570.

If they happened to earn exactly £12,570 and had no other non savings non dividend income then the first £5,000 of their interest would all be taxed.  But at a 0% rate, courtesy of the savings starter rate band.

And only once the savings starter rate band has been used can they then use the savings nil rate band (aka Personal Savings Allowance).

Bigwheels1111

If she earns more than 12,570, Say 14,000.

If Ive read it right, she would be taxed on £1430 leaving £3570 tax free starter rate and £1000 psa.