Interest on Savings, Allowance Understanding Required

moneytree999

Say i put £200,000 into a savings account that pays 4% .. I gather Tax is no longer taken off at source .. so £200,000 , Interest is £8,000 ( 4% Gross ) .. How much would i get 'Net' after my Personal allowance .. actual Net figure i would receive from £200,000 savings ( Inheritance ) 
( I make it 3.2% after 20% Tax , but i get an allowance, so i dont know 'NET' Figure ) Help !

Dazed_and_C0nfused

You get £8,000 from the bank.

Any tax payable will depend on your other income overall tax position.  It could be zero tax.

moneytree999

Dazed_and_C0nfused said:

You get £8,000 from the bank.

Any tax payable will depend on your other income overall tax position.  It could be zero tax.

Hi, I wont have an 'Income' .. Ill be living off the £200,000 Till it all goes

Dazed_and_C0nfused

moneytree999 said:

Dazed_and_C0nfused said:

You get £8,000 from the bank.

Any tax payable will depend on your other income overall tax position.  It could be zero tax.

Hi, I wont have an 'Income' .. Ill be living off the £200,000 Till it all goes

If your only taxable income for a tax year is £8,000 of interest then there won't be any tax to pay.

moneytree999

Great Thanks, Can you explain How much i can get in Interest till i get taxed etc .or the Figure , before Tax starts getting deducted ..Thanks

Dazed_and_C0nfused

moneytree999 said:

Great Thanks, Can you explain How much i can get in Interest till i get taxed etc .or the Figure , before Tax starts getting deducted ..Thanks

Tax will never be "deducted", banks no longer do that.

This might be worth a read.

https://www.litrg.org.uk/savings-property/tax-savings-and-investments/tax-savings-income

moneytree999

Dazed_and_C0nfused said:

moneytree999 said:

Great Thanks, Can you explain How much i can get in Interest till i get taxed etc .or the Figure , before Tax starts getting deducted ..Thanks

Tax will never be "deducted", banks no longer do that.

This might be worth a read.

https://www.litrg.org.uk/savings-property/tax-savings-and-investments/tax-savings-income

Have i got it right ?, If i dont get interest above £18,570 , there is NO Tax to pay ..

eskbanker

moneytree999 said:

Dazed_and_C0nfused said:

moneytree999 said:

Great Thanks, Can you explain How much i can get in Interest till i get taxed etc .or the Figure , before Tax starts getting deducted ..Thanks

Tax will never be "deducted", banks no longer do that.

This might be worth a read.

https://www.litrg.org.uk/savings-property/tax-savings-and-investments/tax-savings-income

Have i got it right ?, If i dont get interest above £18,570 , there is NO Tax to pay ..

Yes, if you have no other taxable income and haven't donated any spare allowance to a spouse.

moneytree999

moneytree999 said:

Dazed_and_C0nfused said:

moneytree999 said:

Great Thanks, Can you explain How much i can get in Interest till i get taxed etc .or the Figure , before Tax starts getting deducted ..Thanks

Tax will never be "deducted", banks no longer do that.

This might be worth a read.

https://www.litrg.org.uk/savings-property/tax-savings-and-investments/tax-savings-income

Have i got it right ?, If i dont get interest above £18,570 , there is NO Tax to pay ..

I was going to put £200,000 in National Savings 4% , and get an ISA ( £85,000 @ 4% ).. But going by the New information ... I might as well put WHOLE lot in NS&i and not get a Tax Free 'ISA' , as its same as putting all in NS&I ( and covered for more than £85,000 ( Unlimited is covered ) .if ive got this all correct 

eskbanker

moneytree999 said:

moneytree999 said:

Dazed_and_C0nfused said:

moneytree999 said:

Great Thanks, Can you explain How much i can get in Interest till i get taxed etc .or the Figure , before Tax starts getting deducted ..Thanks

Tax will never be "deducted", banks no longer do that.

This might be worth a read.

https://www.litrg.org.uk/savings-property/tax-savings-and-investments/tax-savings-income

Have i got it right ?, If i dont get interest above £18,570 , there is NO Tax to pay ..

I was going to put £200,000 in National Savings 4% , and get an ISA ( £85,000 @ 4% ).. But going by the New information ... I might as well put WHOLE lot in NS&i and not get a Tax Free 'ISA' , as its same as putting all in NS&I ( and covered for more than £85,000 ( Unlimited is covered ) .if ive got this all correct 

Yes, if you're not actually going to be paying tax on savings interest then there's less rationale to use a cash ISA, although you could only have paid in £20K per tax year anyway.  Best ISA rates are above 4% though....

Albermarle

If you want the £200K to last many years, then you would be advised to look at investing at least a part of it.