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Personal Savings Allowance

BankerInTheBlack
Posts: 18 Forumite

Hi Folks,
I can't get my head around this and wondering if someone can clear it up as I assume it's quite simple. I note the personal savings allowance changes from £1000 to £500 if you are a higher rate tax payer. So if you earn 1p over the tax threshold for intermediate tax payers you lose £500 from your allowance? I'm sure that's not right and assume it's proportioned somehow but can't find any detail.
Any info appreciated!
I can't get my head around this and wondering if someone can clear it up as I assume it's quite simple. I note the personal savings allowance changes from £1000 to £500 if you are a higher rate tax payer. So if you earn 1p over the tax threshold for intermediate tax payers you lose £500 from your allowance? I'm sure that's not right and assume it's proportioned somehow but can't find any detail.
Any info appreciated!
0
Comments
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AlistairMSEnew said:Hi Folks,
I can't get my head around this and wondering if someone can clear it up as I assume it's quite simple. I note the personal savings allowance changes from £1000 to £500 if you are a higher rate tax payer. So if you earn 1p over the tax threshold for intermediate tax payers you lose £500 from your allowance? I'm sure that's not right and assume it's proportioned somehow but can't find any detail.
Any info appreciated!5 -
AlistairMSEnew said:Hi Folks,
I can't get my head around this and wondering if someone can clear it up as I assume it's quite simple. I note the personal savings allowance changes from £1000 to £500 if you are a higher rate tax payer. So if you earn 1p over the tax threshold for intermediate tax payers you lose £500 from your allowance? I'm sure that's not right and assume it's proportioned somehow but can't find any detail.
Any info appreciated!
Firstly you check your liability without this 0% rate band and if you are a higher rate payer you recalculate your liability with (upto £500 taxed at 0%).
If basic rate it's £1,000 taxed at 0%.
And yes, it is a cliff edge.3 -
Thanks for the replies folks. I was sure it wouldn't work like that but it now makes sense why I couldnt find any further info! Cheers.0
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