tax on savings.

brizeboyh

my partner is a non tax payer earning less than £10k from a pension and is not old enough to get state pension for a few years. I am a basic tax payer from a pension, no state pension also not old enough.. We have savings that would attract tax as it would earn more interest than £1000. If my partner can get a better savings interest rate than an ISA rate, would it be best for us to put all our savings in this non ISA account above the 20k we can both put in an ISA or does the government set a limit to how much a non tax payer can earn in interest above the £1000. (hope that makes sense)

jimjames

The £1000 tax free interest is only relevant when you have used up all your personal allowances. If you're earning under £10k then that won't be the case so you will have much more than £1000 available to get without paying tax.

brizeboyh

So I should put all our savings in the name of the non tax payer as well as using the tax payers ISA yearly allowance and £1k allowance. Many thanks

MeteredOut

brizeboyh said:

So I should put all our savings in the name of the non tax payer as well as using the tax payers ISA yearly allowance and £1k allowance. Many thanks

Assuming you would otherwise pay tax on the interest, and so long as you trust them, yes