Tax on savings

chandestle

hi, 

im new here so apologies if this has been asked before.

I have savings in an account with a building society.  I am 64 years old and retired. I don’t get my pension for another two years.  My question is - do I pay tax on the interest I earn on my savings.?

Thank you.

Barkin

Potentially, yes. But it'll depend on other stuff that we don't know.

e.g. how much interest are we talking about? Are your savings in ISA's? Do you have any other income, and if so - how much?

MeteredOut

chandestle said:

hi, 

im new here so apologies if this has been asked before.

I have savings in an account with a building society.  I am 64 years old and retired. I don’t get my pension for another two years.  My question is - do I pay tax on the interest I earn on my savings.?

Thank you.

You will pay tax on all, anything over £500, anything over £1000 or anything between £1000 and £18570 of your interest, depending on what other income you have.

https://www.gov.uk/apply-tax-free-interest-on-savings

artyboy

MeteredOut said:

chandestle said:

hi, 

im new here so apologies if this has been asked before.

I have savings in an account with a building society.  I am 64 years old and retired. I don’t get my pension for another two years.  My question is - do I pay tax on the interest I earn on my savings.?

Thank you.

You will pay tax on all, anything over £500, anything over £1000 or anything between £1000 and £6000 of your interest, depending on what other income you have.

https://www.gov.uk/apply-tax-free-interest-on-savings

Not necessarily, if the OP has no other income except from savings interest then they can also use their £12,570 of personal allowance to offset tax liability.

MeteredOut

artyboy said:

MeteredOut said:

chandestle said:

hi, 

im new here so apologies if this has been asked before.

I have savings in an account with a building society.  I am 64 years old and retired. I don’t get my pension for another two years.  My question is - do I pay tax on the interest I earn on my savings.?

Thank you.

You will pay tax on all, anything over £500, anything over £1000 or anything between £1000 and £6000 of your interest, depending on what other income you have.

https://www.gov.uk/apply-tax-free-interest-on-savings

Not necessarily, if the OP has no other income except from savings interest then they can also use their £12,570 of personal allowance to offset tax liability.

Of course, edited my reply to accommodate that

JGB1955

MeteredOut said:

You will pay tax on all, anything over £500, anything over £1000 or anything between £1000 and £17570 of your interest, depending on what other income you have.

More likely, £18,570

chandestle

Thank you x

Bigwheels1111

With no income you can get £18,570 tax free.
From interest alone.
made up of,
£12,570 of earnings, interest, pension or wages. For you interest.
£ 5,000 of interest. Starter rate for savings.
£ 1,000 PSA, personal savings allowance.


https://www.gov.uk/apply-tax-free-interest-on-savings

LITRG

Hello, tax on savings income can be amazingly complicated. If you would like more information about the different nil-rate bands and allowances, and how they all interact, you can find it starting here: https://www.litrg.org.uk/savings-property/tax-savings-and-investments/tax-savings-income. Hope that helps, Thanks.