Do I pay income tax on money I transfer from a savings account to my current account?

youlicees

I use this method to pay credit card balance when I use it to pay for, eg, a holiday.
But I want to know if it will be counted as income and taxed.

DE_612183

no, it's your money

flaneurs_lobster

There is no tax to pay on a transfer of funds from one account to another.

Tax is payable on (most) income, what's the source of the funds in your savings account?

maman

The only tax you'll pay is if you're over the allowance for savings. Transferring and spending some of the savings will reduce your tax liability.

However, this doesn't happen instantly. Like many people, I'm overpaying on savings tax this year as my revised tax code is based on the savings I had last tax year despite since spending a chunk of it on planned building work. 

nottsphil

I believe the OP thinks that savings themselves are taxable, and that using them to pay for things should reduce the tax. No respondent has mentioned the interest it yields, which is the only thing that is assessable for tax.

Bookworm225

maman said:

The only tax you'll pay is if you're over the allowance for savings. Transferring and spending some of the savings will reduce your tax liability.

that is a confusing way to explain things
Spending your own money simply reduces the balance upon which you earn interest, it does not impact the tax you pay on the balance itself since there is no tax on the balance. Tax may be payable on the interest earned in those accounts subject to the savings "allowances".

Op can transfer any amount of money they want between any number of their own accounts and no tax will be payable on the amounts transferred.

Albermarle

maman said:

The only tax you'll pay is if you're over the allowance for savings interest. Transferring and spending some of the savings will reduce your tax liability, ( if you have one) as you will naturally earn less interest.

However, this doesn't happen instantly. Like many people, I'm overpaying on savings interest tax this year as my revised tax code is based on the savings I had last tax year despite since spending a chunk of it on planned building work. 

Some amendments in bold to make it clearer.