Quick question re tax on savings interest

BoxerfanUK

if a persons annual income from pension drawdown is set at the current tax threshold of 12570 and they have no other income apart from interest on savings, how much interest can they earn before they have to pay tax on the interest?  

friolento

Provided there is absolutely no other taxable income (state pension??): £6,000

BoxerfanUK

friolento said:

Provided there is absolutely no other taxable income (state pension??): £6,000

Thanks.  No, no other taxable income at this stage.  I was getting confused as I read somewhere that the £1000 annual savings allowance was INCLUDED within the £5000 starting savings rate, but from what you are saying it is IN ADDITION to the starting rate.

ColdIron

Yes it is in addition

Dazed_and_C0nfused

BoxerfanUK said:

if a persons annual income from pension drawdown is set at the current tax threshold of 12570 and they have no other income apart from interest on savings, how much interest can they earn before they have to pay tax on the interest?  

Either £4,740 or £6,000 or depending on whether they have applied for Marriage Allowance.

If they receive either Marriage Allowance or Married Couple's Allowance then they will be liable to tax above £12,570 but the tax credit given for Marriage Allowance or Married Couple's Allowance could reduce the liability to £0.