Starting rate for savings

squidlydiddly2

I have read Helen Saxon of MSE's explanation of the starting rate for savings but one question please. My wife has given me 10% of her personal income tax allowance, does this affect both of our starting rates or have no effect? Thank you

Bigwheels1111

Do you earn over £12,570 or between £12,570 and £17,570

If you earn over £12,570 the starter rate is reduced but your earnings

So £14,000 earnings would leave £3,570 starter rate.

Sorry dont know about 10% rate from wife as not delt with that before.

xylophone

https://community.hmrc.gov.uk/customerforums/pt/b5ecd2e8-55c3-ed11-9ac4-00155d9771aa

https://www.litrg.org.uk/tax-guides/tax-basics/what-tax-allowances-am-i-entitled

Dazed_and_C0nfused

squidlydiddly2 said:

I have read Helen Saxon of MSE's explanation of the starting rate for savings but one question please. My wife has given me 10% of her personal income tax allowance, does this affect both of our starting rates or have no effect? Thank you

No, what you are entitled to is a tax credit (deduction) not any additional allowances so it doesn't impact you at all.

But it could impact your wife as she has a reduced Personal Allowance of £11,310 so if she had non savings non dividend income (pension income, earnings etc) of say £12,000 then she will have a reduced savings starter rate band.

squidlydiddly2

Thank you, exactly what I wanted to know. With a predicted increase of 8.5% in state pensions and with savings rates fairly high I will need to transfer some ssvings to my wife and also consider ISAs next tax year.