How much interest can a pensioner get tax free?

WHUFC123

So if my pension is 13k I can still have about 5k savings interest tax free .?

RG2015

WHUFC123 said:

So if my pension is 13k I can still have about 5k savings interest tax free .?

Yes, that sounds about right, if you do not have any other taxable income  See the link below to the relevant HMRC web page.



 https://www.gov.uk/apply-tax-free-interest-on-savings

Doctor_Who

WHUFC123 said:

So if my pension is 13k I can still have about 5k savings interest tax free .?

£13,000 pension - £12,570 personal allowance (assuming you've not used Marriage Allowance) = £430

£5,000 starting rate - £430 = £4,570 + £1,000 PSA = £5,570 of interest taxed at 0%

Isarulesaretoocomplex

https://forums.moneysavingexpert.com/discussion/comment/80126478#Comment_80126478

And using the annual isa savings of up to 20k may be beneficial if he hits above the 18750 threshold

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82047413#Comment_82047413

It's £18,570 but you resurrected a three year old thread so it's unlikely that anyone was waiting for further input!

jaypers

I’m being pedantic here but just a point to note that it makes absolutely no difference whether you are a pensioner or someone working. The tax calculation on interest is exactly the same as it is based on income.

surreysaver

https://forums.moneysavingexpert.com/discussion/comment/82048323#Comment_82048323

Or even a child - some people think children don't attract tax either!

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82048459#Comment_82048459

Unless the parent gave the child the money in the first place. Too much interest earned will give the parent a tax bill.

Isarulesaretoocomplex

Nice to see further input!