Retired with UK and EU pension

Ashgall

Martin has newly warned about savings income for employed people but I want to know what should be done when like me you have a UK state pension plus a French pension in Euro's and a lumpsum purchased annuity. The total of these incomes is under £40,000 depending on exchange rates of the French element each year.
I have to make a self assessment return to HMRC each year due to the Euro income.
How much interest can I earn on savings without paying tax, and do I have to declare it on the return.

Dazed_and_C0nfused

Ashgall said:

Martin has newly warned about savings income for employed people but I want to know what should be done when like me you have a UK state pension plus a French pension in Euro's and a lumpsum purchased annuity. The total of these incomes is under £40,000 depending on exchange rates of the French element each year.
I have to make a self assessment return to HMRC each year due to the Euro income.
How much interest can I earn on savings without paying tax, and do I have to declare it on the return.

From what you have posted probably £1,000.  But your purchased annuity might be using some of that.  Is the annuity a purchased life annuity or was it bought using money from a pension fund?

Note the £1,000 will be taxed, but at a 0% tax rate.

That is for taxable interest.  You can have unlimited amounts of interest from an ISA as interest from ISA's is exempt from tax.

Ashgall

Thanks for your comment, the annuity was purchased some years ago using money from a pension pot. The income from this is taxed at source.